[italkcash]

An aggressively managed portfolio of investments that uses advanced investment strategies such as leverage, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark).

Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds are illiquid as they often require investors keep their money in the fund for at least one year.

Speculating in Hedge Funds is a bit of a different than the original marked speculations such as stocks or bonds. First of all it has higher risk, and secondly it carries a certain level of investor to join such a club.

For setting up such a venture it would be best to look into getting an offshore company and thereafter setting up a hedge fund. I would say that setting up in The Cayman Islands is probably the best bet so far.