I found this article very informative, they seem to pack a lot of interesting information into their articles.

"Approximately 80 percent of the world's hedge funds are believed to be domiciled here in the Cayman Islands, with the British Virgin Islands and Bermuda also popular domiciles......According to a number of reports, one of the Cayman Islands' leading financial products, hedge funds, is not as lucrative as many have supposed, but its popularity remains at an all time high."

And; "Hedge fund trading activity accounted for up to half the daily turnover on the New York and London Stock Exchanges in 2005"

I had no idea it was that high even back in 2005, so I thought I would comment. Anyway, an interesting read.