A recent report (Report) lays out the key considerations for hedge fund managers contemplating redomiciliation to the European Union (EU).  The Report is based on interviews of 49 hedge fund managers from 18 different countries, including managers who have redomiciled, managers who are thinking of redomiciling and managers who have no redomiciliation plans.  The Report catalogues the three most significant benefits driving redomiciliation, and other factors that factor into redomiciliation decisions.  The three key benefits and others mentioned in the Report and discussed herein, however, must be weighed against the flexibility and expertise of offshore funds as well as certain investors’ preferences for other, easier ways to allay their concerns.  This article catalogues the findings of the Report; describes redomiciliation mechanics; considers choice of jurisdiction arguments; describes a compromise position that may work for a range of managers that currently have offshore funds; and discusses the pros and cons of certain typically used European structures for hedge fund strategies.  See also “The Implications of UCITS IV Requirements for Asset Management Functions,” Hedge Fund Law Report, Vol. 4, No. 36 (Oct. 13, 2011).