Cayman’s financial services industry added a net number of 66 mutual funds and 359 private funds in the second quarter of 2022.
The Cayman Islands Monetary Authority counted a total of 28,278 registered funds at the end of June.
They included 12,935 mutual funds and 15,343 private funds, a year-to-date increase of 1.7% and 4.5%, respectively.
Last year, the number of mutual funds grew by 6.9%, while active private funds jumped 15.6%.
The continuing growth trend is contrasted by a third consecutive month of hedge fund declines, as equity markets extended their steep losses this year.
North American equities completed their worst first half of a calendar year in more than 50 years, and volatility accelerated across global markets.
In June, the Eurekahedge Hedge Fund Index declined -2.7%, the steepest monthly drop since March 2020. For the year-to-date, the index is down -5.6%, marking its worst performance since inception, the data provider said.
However, equity markets like the S&P 500 fell at the same time by 8.4%, which meant that hedge funds outperformed stock markets by a considerable margin.
During the month, hedge funds posted losses across all strategies, with event-driven funds faring the worst (-4%), Eurekahedge said.
Only CTA/managed futures recorded positive gains in 2022 so far, supported by the commodity prices and the strength of the dollar.
Hedge fund performance was negative across all regions, with North America-focused funds recording the largest losses (-3.5%).
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