Offshore hedge fund.
Offshore hedge fund
The offshore hedge funds industry has seen a lot of transformation in the past 5 years. During 2000-05 the number of hedge funds has doubled to around 7000 and dropped to 4500 in 2010.In terms of size of those investments- $700 billion (2005) to $1.8 trillion (2008) to $1 trillion in 2009. According to the forecasts of Bank of New York Mellon and Casey Quirk 2013 the hedge fund industry under management will reach $ 2.6 trillion.
Hedge fund is collective investment fund built for the purpose of speculating on a variety of financial markets.
Variety of trading strategies allows hedge funds to profit in a case of a falling market- something that many economic structures are not able to do. The purpose of hedge funds at this stage is that it allows you to pool into one place a combination of different assets and financial resources, which greatly reduces the risk of the investments.
The use of hedge funds is especially important in the case of significant price fluctuations. Then the possibility of using, for example, foreign exchange operations, and various options allows to profit on the price difference of the same assets, something that less flexible financial institutions simply cannot do. A talented managed hedge fund is able to earn a guaranteed profit and prove to be stable no matter what turn an economy takes.
What is the best place to register your offshore hedge fund? Cayman Islands!
Cayman Islands is one of the world’s major offshore center. It is one of the so-called British Overseas Territories, with a population of 57 thousand people and about 70 thousand companies registered there, including 500 banks, 800 insurance companies, about 10 thousand funds. About 70 % of all hedge funds in the world are registered in the Cayman Islands.
The complete absence of tax is one of the main reasons. Industry investment funds in the Cayman Islands are regulated by the legislation on mutual funds. The monitoring of the compliance with the legislation is done by the Cayman Islands Monetary Authority (CIMA).