The Pandora Capital Hedge Fund is the daughter company of Pandora Capital Ltd (Ireland) registered in the Cayman Islands.
The fund services are only provided by the daughter company in order to comply with regulation.
So why the Cayman Islands? Any hedge fund professional can confirm that the financial regulatory framework has been tailor-made for the hedge fund industry. Whereas the regulation is very similar to that of the United States, the regulatory burden is considerably lower than in any “on-shore” state.
“Regulatory burden” also includes the topic of taxation – this is also what we mean when we say that the Cayman Islands are “tax neutral”. The point is not to avoid tax, per se; it’s to avoid foisting the tax regime of one or another specific jurisdiction onto investors and participants of another tax regime. We have, naturally, engaged in a bit of simplistic hyperbole here, but the point is valid and the regulatory burdens that would be applicable to certain investors are particularly egregious.