An offshore hedge fund is an offshore investment fund in which many investors pool their capital, investing in a range of assets in an offshore jurisdiction with the aim of increasing return on investment thanks to the absence of taxes in those countries.
This type of offshore fund is regulated and managed by a person with specific training and demonstrable experience.
Investors share profits or losses proportionally, depending on the initial investment.
Hedging, one of the main elements of hedge funds, involves protecting against the risk of asset losses by using various investment strategies and other financial instruments.
The fund’s objective is set out in advance in the articles of the offshore fund formation, which is the legal document that contains information about the fund, its history, its performance and its managers.
In recent years, investment funds have become increasingly popular with investors, and this is in part because of the benefits they can provide to investors. When we add the offshore element into the equation, it is easy to see why these types of investments have grown in many offshore countries.
