How can U.S. regulators (CFTC) enforce that an offshore Fund not accept any U.S. clients? Isn't this beyond their jurisdiction? Is there an example where the CFTC has gone after an entity located outside of the US?
In a HF, investors are limited partners of the fund whose losses are capped and limited only to the funds they invest. How do hedge funds prevent a situation where they owe a broker more than the fund's total equity? (in a situation like the CHF blowup, for ex.).
It would therefore be the HF...