This is WRONG. Offshore Hedge Funds are more expensive to set up and to manage. Which offshore locale is his fund located in if you know. I think the jurisdiction of the offshore country would make a small difference in expenses.
His corporation based in Panama, and as far as he told me the cost to startup the fund was about $10K in attorney but again anyone must make his/her own due diligence. Regards.
Check out the 2 posts here: http://www.daytraderjobs.com/search-by-state.php Click on the ads by Stonehenge. Looks like this would help.