Mutually beneficial: Luxembourg's background gives it a hedge start

special report: luxembourg

Luxembourg is the mutual fund capital of Europe, a role it has established over many years. When you think of Luxembourg, it is its !1.5trn mutual fund industry you think of first, admits Michael Ferguson, consultant at Ernst & Young in Luxembourg.

However, this expertise gave it an immediate head-start in the hedge fund administration business, partly because there was always a wealth of reputable administrators based there. In addition, much of the demand for hedge funds and funds of hedge