Another European Country Joins the Race To Attract Hedge Funds

Czech Republic wants a piece of the rising hedge fund industry, after a new EU regulation named AIFMD (Alternative Investment Fund Manager Directive)  takes effect in July. Previously the highest number of hedge funds, after the U.S., are domiciled in Luxembourg, a tiny EU state. But the new EU rules, which are meant to enforce greater regulation and control in the money-managing industry, will require outside hedge funds to be domiciled in any one of the European Union members.

Not only do the major EU players like Germany and the...