Cayman insolvencies favour activist investors

Active role in liquidation can generate additional returns

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The failure of a hedge fund can be devastating for those who have invested money in it. But savvy investors in Cayman Islands funds can minimise their losses and even generate additional returns by taking an active role in the liquidation process.

The territory’s legal system – with its developed insolvency profession and a judiciary sympathetic to minimising credit and investor losses – offers tools for investors eager to extract maximum value from these situations.

The liquidation of a Cayman f