Invest in Hedge Fund Query

[troubled soul]

Dear Sir,

I want to invest in offshore hedge fund.
Can you suggest any offshore hedge fund that can be trusted ?
Is it possible to open account remotely with them ?
Or physical presence is required ?

Thanks

Last edited: Dec 9, 2020

 

[mickey]

Despite the thread is very old, I like to write a reply due I have some information and experiences about this topic.

Well as an investor you don't need to be physical present in the same (offshore) location as the fund. But according to the recent changes in laws of several offshore jurisdictions, the director of a fund needs to be physical present in the same location as his/her fund.

It's difficult to suggest any hedge fund due the markets and hedge funds are heavily correlated in their performances (nature of the business).

Many if not all Hedge and Mutual Funds which are registered in offshore jurisdictions are limited in the count of their investors they can advise. This limit of investors vary between 20-100 and is determined by license and from jurisdictions.

This fact explains why such funds are only available to high net worth individuals, because a Hedge Fund manager earns more performance fee with 20 investors who are millionaires rather than physicials.

 

[GeneralGogol]

Almost almost a waste of time.

Hedge funds rarely outperform a simple ETF strategy and in order to outperform it after fees they need to be exceptional. The truly exceptional ones don't want you as a client unless you have 8-9+ figures to invest and if you did you wouldn't be asking this in this forum.

In investments, you get what you don't pay for.

Don't pay high fees for some shmuck to gamble with your money. (For more information google Pershing Square- which happen to be a hedge fund that is publicly listed which you can invest in. In order for Bill Ackman to outperform the markets for you he will need to do more than 20% per annum- which ain't gonna happen).

 

[JohnnyDoe]

GeneralGogol said:
Almost almost a waste of time.

Hedge funds rarely outperform a simple ETF strategy and in order to outperform it after fees they need to be exceptional. The truly exceptional ones don't want you as a client unless you have 8-9+ figures to invest and if you did you wouldn't be asking this in this forum.

In investments, you get what you don't pay for.

Don't pay high fees for some shmuck to gamble with your money. (For more information google Pershing Square- which happen to be a hedge fund that is publicly listed which you can invest in. In order for Bill Ackman to outperform the markets for you he will need to do more than 20% per annum- which ain't gonna happen).
Click to expand...

Hedge funds make sense if you want to invest in a particular strategy/instrument/sector and you have no other ways to do so. They are also useful in certain tax optimization contexts.
The average investor should only consider index investing and low cost ETFs

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