Not really, but it's hard to tell through the jargon. The point is that the Caymans are neutral territory for tax purposes. If you're in the US, you owe US tax

Not really, but it's hard to tell through the jargon. The point is that the Caymans are neutral territory for tax purposes. If you're in the US, you owe US taxes on the profits in your Cayman fund. Likewise, if you're in Canada, you owe Canadian taxes on the profits on your Cayman funds. This is better than setting your investment vehicle up in Delaware, because if you do that, your Canadian investor will have to pay US taxes (that they don't owe) and then spend months trying to get the money back. The on-shore US regulations are crazy enough that US based institutional investors (like pension funds) will get nervous at the lack of professionalism if you aren't using a Cayman vehicle.