The number of funds licensed by the Cayman Islands Monetary Authority grew by 4.1% in 2018, with the total number just short of the 11,000 mark by the end of the year.
Investors removed $19.64bn from the industry in December, bringing total investor redemptions to $35.3bn in 2018, the second highest investor redemptions since 2009.
Add the performance-related asset decline of $52.4bn during the year and the total industry assets dropped by $87.7bn, according to eVestment's Hedge Fund Asset Flow Report, that local news outlet Cayman Compass first reported.
The number of Cayman-registered funds, however, jumped from 10,559 in 2017 to 10,992 last year.
Despite a soft insurance market, Cayman's captive insurance industry saw a "robust" number of new formations with 33 new licenses issued in 2018, bringing the total number of insurance companies to 730.
Class B, C and D licensees totaled 703 - up from 696 in 2017. About 21%of insurance companies in these groups were formed as segregated portfolio companies. Pure captives and group captives represented the two main categories.
Meanwhile, company statistics are set for another record-breaking year after the total number of companies registered in Cayman reached 106,291 in the third quarter of 2018.
The Cayman Islands Company Registry saw 15,494 new companies, more than at any time since the financial crisis, and 6,894 terminations through November 2018. This compares with 13,046 new registrations and 10,203 terminations for the full year in 2017.