What regulations offshore hedge-funds have?

Question

Are offshore hedge-funds, -open only to non US residents/citizens-, under to the same regulations as US hedge funds?

i.e. they may not advertise, may have a maximun of 99 investors, only open to acredited investors, etc.

Answer 1

I have a good idea where you are going with this question. I would just say that in this area....an ounce of prevention is worth a ton of cure...be sure to get at least a couple of legal opinions as to registration, lack of registration, offering questionnaires, etc. etc. etc. My understanding is that offshore is for non-us only and of course the SEC is working towards making accredited 2.5 Mil liquid and removing income inclusion. Best to get expert help...note my username. Best of luck.

Answer 2

Hedge funds are funding funds which hedge their positions by technique of taking short positions - ie promoting inventory they do no longer have. they're particularly risky and for this reason are in elementary words in a position to provide their produts to state-of-the-artwork investors - ie many times very rich persons who've earlier adventure of making an investment in this way of product. even as the money will tend to be offshore (Bermuda, case in point), and for this reason no longer regulated by technique of the SEC or the FSA, the managers who run the money will be regulated by technique of their close by regulators - which includes the FSA, of their potential as manager. The FSA has indicated a growing to be pastime in hedge funds, so even as they're not likely to be straight away regulated any situations quickly, issues have become thrilling :)

Answer 3

you have to be an accedited investor in most places but not all
But those investment vehicles should really only be used by professionals, they carry a much different risk than usual funds

Answer 4

No.