Money isn't everything, as Bermuda continues to prove with its ability to attract hedge fund business despite being up against the likes of Cayman Islands and the British Virgin Islands.

But with a marketing budget of just $2.1 million the efforts of the Bermuda International Business Association are seriously dwarfed by Cayman's - which is ten times as high - and the mega-budget of newcomer Dubai with $83 million to spend on promoting itself as an international financial centre.

A larger pot of money from Government would certainly help things along, but for now BIBA is determined to carry on bringing in success with its limited resources .

Keeping up Bermuda's international profile through attendance at high-powered conferences and summits is important as rival jurisdictions increase in number and fine-tune what they have to offer compared to Bermuda.

For the moment, Bermuda's reputation and the way it is positively marketed by BIBA remains a powerful drawing card for business, particularly the capital riches of the hedge fund industry as was apparent at this week's 14th Annual MARHedge Global Hedge Fund Summit held at the Fairmont Southampton.

BIBA was a platinum sponsor of the event, had its own kiosk at the summit and hosted an exclusive dinner for around 40 of the most influential figures attending the three-day gathering.

That is the sort of work that BIBA chief executive officer Cheryl Packwood and her small team put in as often as possible to maintain and improve the Island's chances of attracting new business.

Reflecting on the MARHedge experience, Ms Packwood said: "That was a major event in the hedge fund investment world with between 600 and 700 delegates, and those include investors, managers and decision makers who decide where to have their hedge funds and investments."

Bermuda currently has over 2,000 hedge funds, Ms Packwood estimates. This year has also been a good one in terms of new incorporations for the Island. And some of the comments BIBA has encountered from potential investors indicate that more investment is likely to head the Island's way.

Some have spoken of trying out other offshore rivals including Cayman and the British Virgin Islands before concluding that Bermuda, with its higher regulatory standards and its good reputation, is the better choice.

Of BIBA's role at MARHedge and other global conferences, including upcoming events in Dubai, Paris and Geneva, Ms Packwood said: "It is important for us to be heard 'front and centre' as the jurisdiction of choice.

"We get the information out. We tell investors that we have not increased our costs like others, we tell them of our policies for vetting investors and new regulatory acts."

At a hedge fund conference for Latin America, which was held in Miami a week ago, the BIBA team met an investor from Chile who was sick of hearing about Cayman Islands and wanted instead to hear about Bermuda and what it offered as it has a greater regulatory reputation internationally.

Another group told BIBA it had been to the Cayman and the BVI and had decided on Bermuda for its incorporating.

Ms. Packwood said: "A lot of people say they have been to the Caribbean and it is not all it's cracked up to be and the want to come to Bermuda.

"For institutional hedge funds what jurisdiction they are in is an issue where they are domiciled. Bermuda has a strong reputation and the Middle Eastern funds are looking for quality jurisdictions."

At its private dinner for leading investors and decision-makers, held at the Waterlot Restaurant, BIBA entertained delegates and had Matthew Elderfield, CEO of the Bermuda Monetary Authority, as its guest speaker who spoke on the BMA and Bermuda's regulatory environment and how has high enough regulation to satisfy the international markets but at the same time not so much regulation that it stifles business.

BIBA was not the only Bermuda-based summit sponsor. Butterfield Bank, Ernst and Young and TeleBermuda International were also listed sponsors, while the Bermuda Stock Exchange, Bermuda Commercial Bank, as well as PriceWaterhouseCoopers, Deloitte, KPMG, and Conyers Dill & Pearman were amongst the exhibitors.

A highlight of the summit was keynote speaker Dr. Alan Greenspan, former US Federal Reserve chairman.

Ms Packwood said: "He spoke about subprime and the US dollar going down versus other currencies, particularly developing nations such as China.

"He said we are going to see those economies, such as China, Brazil, and Russia, getting stronger. One of the questions was 'do we want a strong China?'

"The answer was yes we do. The stronger your trading partners the more money and transactions can be made."

Susan Stirling, BIBA's marketing director, who has seen Dr. Greenspan once before, said: "This was a much more relaxed Dr. Greenspan. When he was talking about the likelihood of a US economic recession he said he gives it a 20 percent risk likelihood each year. Six weeks ago he increased that probability to 30 percent and now he thinks it is at 40 percent."

As the world famous economist spoke to a packed, standing-room auditorium at the Fairmont Southampton, he revealed some of the tricks he uses to take the economic temperature and foresee the likelihood of a recession.

Ms Packwood said: "He said he looked at car sales figures at the end of the month and the weekly unemployment claims and made an assessment."