Domestic Fund Formation It is a simple process to enter the hedge fund industry; practically anyone with $15k to $20k can start a hedge fund and forming a hedge fund gets easier every year.
Offshore Fund Formation An offshore hedge fund is simply a structure used by hedge fund managers as a way to attract offshore investors (non-U.S. citizens) or U.S. tax-exempt investors such as pension and endowment funds.
How MarketWatch estimated index investors’ holding
In order to determine that index investors, such as big pension funds, have increased their holdings in oil this year, MarketWatch used publicly available data on their holdings in other commodities and the make-up of two major commodities indexes that include oil.

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