# Hedge fund type of company

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- Post ID: 594368
- Modified: 2023-07-25T21:01:56+00:00
- Language: en

## Definition

The majority of hedge funds operating worldwide are each established in the USA as a partnership (joint partnership) in which shareholders or limited liability partners can participate. The investors thus assume the role of limited partners. As a result, the partnership itself is tax-exempt. Taxation shifts to the level of the participants (pass-through entity: any legal entity that collects and distributes income and losses to its owners, who wish to protect themselves from personal liability for obligations of the entity). - Hedge funds in offshore financial centers - mainly Bahamas, British Virgin Islands, Cayman Islands, Barbados, Bermuda, Channell Islands - are regularly set up in the same way to ensure tax exemption of the company. - All investment decisions, however, are not made by the company itself, but are regularly made and executed by management (investment advisors) commissioned for this purpose. - See brokerage, performance fee, leverage, high watermark method, non-bank, no-load fund. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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