Tuesday, January 15, 2013

Hedge Funds' Manhattan Migration




From the WSJ: For fledgling hedge funds, Manhattan's skyline is shining a bit brighter these days…..Hedge-fund managers have long viewed New York as a prime location for business because of its appeal to employees and its status as one of the world's financial centers. It doesn't hurt that many managers call the island home.

But in a difficult fundraising environment that favors funds that already oversee billions of dollars, startup managers have had to work harder to get noticed. More are betting they can catch the eye of potential investors by helping them avoid the journey up the New England Thruway.

"Being in New York—it just makes a lot of sense to make life easier for your customers," says Steven Bloom, co-founder of North Creek Butler, a hedge-fund "accelerator" that raises money for early-stage and small hedge funds.

Of the new firms starting out in Manhattan, Greenwich or Stamford, about 86% picked the Big Apple, on average, from 2003 to 2008, according to eVestment, which tracks data on about 70% of U.S. hedge-fund firms. In 2009 and 2010, Manhattan was home to an average of 92% of the fund launches. Data for 2011 suggest the trend has continued…..

Read all about it at http://online.wsj.com/article/SB10001424127887324595704578242081141198410.html?mod=googlenews_wsj

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