Thursday, September 22, 2016

Offshore hedge funds are unregistered pooled investment

Offshore hedge funds are unregistered pooled investment funds domiciled outside the US (i.e., "offshore") and open only to non-US investors or, occasionally, US tax-exempt "accredited" investors. Offshore hedge funds are usually structured as corporations. Like domestic hedge funds, they are not subject to portfolio management restrictions that may apply to registered funds. Generally, the number of investors is not restricted. Many offshore hedge funds are formed in international tax havens such as Bermuda or the Cayman Islands, which offer privacy as well as tax advantages. It is important to keep in mind that the domicile of a hedge fund is not an indication of its quality.

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