With its favourable tax conditions, robust corporate governance, broad range of third-party service providers, and proximity to mainland Europe, Guernsey is recognised as a leading European centre for hedge fund domiciliation. The funds industry in the region has been steadily growing over the past few years, with both single manager and fund of funds groups opening up units in Guernsey. The sector is on course for further growth as reflected in a spate of activity in the region over the course of 2010. A number of fund of funds have based their whole operations in the region, such as Channel Islands Alternatives which annually invests in 5-10 new funds through its Hurdle fund of hedge fund. Some funds of funds based outside of the region have been active in Guernsey for many years – for instance, International Asset Management (IAM) launched its first Guernsey domiciled fund of hedge funds in 1996. There have been some notable recent fund of funds launches in Guernsey in 2010, for instance in April 2010 the Diversified Opportunities Fund was launched by MeesPierson Asset Management. It is the first fund to be offered by the firm’s offshore business. Growth in the industry is still slow as a result of the fragile economic situation, however there are signs that confidence is returning to the markets. Guernsey-based Collins Stewart has seen its profits return following the acquisition of Corazon Capital Group, a move which has bolstered its resources and assets in Guernsey.