THE VITAL ROLE
Directors play a central role in every stage of the
life cycle of a hedge fund. Victor Murray of MG
Management examines every aspect of the relationship
between directors and their funds.
The board of directors plays a central role in any offshore
hedge fund. The directors are involved at every stage of
the life cycle of a hedge fund. The life cycle can roughly be
determined as the fund formation stage, the post-launch
operation and wind-down.
Hedge funds have evolved into very sophisticated investment
vehicles, no two hedge funds being the same. The role of the
director cannot therefore be defined within narrow parameters.
However, there are common issues that arise and can be addressed
competently by an experienced hedge fund director.
62 CAYMAN FUNDS | 2019
Composition of the board
During the fund formation and planning stage the composition of
the board of directors is one decision that the promotors/manager of
new hedge fund must make. It is common for the manager to speak
with a number of directors in order to assess their suitability for their
One of the issues that was central to the widely reported
Weavering case in the Cayman Islands was whether the directors