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Saturday, November 21, 2009 9:01 PM

Published 11/06/2009 by Reuters UK


Luxembourg to boom with onshore move

GENEVA (Reuters) - Luxembourg could draw hedge funds in their droves as European investors retreat from offshore vehicles and seek to rein in liquidity and counterparty risk in the post-Madoff, post-Lehman environment.

To meet investor demand, managers in Europe's $300 billion hedge fund industry...

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Quotes

"It's more the Madoff effect than the legislation effect, funds now want to come onshore, not be dependent on the offshore market" said Martin Kloeck...
"Asset managers get the Luxembourg-regulated tag, so why wait to see what new laws might tell us to do?" said Kloeck, whose...
"It is much easier to sell UCITS or SIF-compliant funds, they are liquid, the strategies are transparent and they provide solid investor protection" said Salvatore Imperatore...

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