Two major hedge funds have recently re-domiciled from Bermuda to the Channel Island citing the flexibility of Jersey's expert funds regime as the reason behind the move.

The two are Liberty Ermitage Asset Selection Fund, which has $700 million of assets under management, and the Liberty Ermitage Resources Fund, which has $30 million of assets under management.

The funds were advised by lawyers Bedell Cristin, whose head of Investment Funds and Private Equity Group Martin Paul said: "In 2005 Jersey was named as one of the top two jurisdictions for hedge funds in the Legal Week 'Insight' survey of specialist funds advisors and decisions like this only serve to reinforce that message.

"The Island offers a secure and well-established environment and is clearly very highly regarded within the funds community."

The Expert Funds regime was launched in February 2004 and streamlines the authorisation process for new funds and is particularly suited to hedge funds and other more sophisticated investment products aimed at the more experienced investor.