BlueCrest to relocate 50 staff to Geneva
By Sam Jones, Hedge Fund Correspondent
Published: November 11 2009 23:33 | Last updated: November 11 2009 23:33
BlueCrest Capital, one of the UK’s largest hedge funds, is moving a significant portion of its operations to Geneva amid growing concerns about London’s status as a centre for alternative asset managers.
Founded in 2000 by former JPMorgan traders Bill Reeves and Mike Platt, the $15.5bn firm is the third-largest hedge fund manager in Europe. It is looking to relocate 50 staff.
The new office will be BlueCrest’s largest after its headquarters in London, where it currently employs 300 people.
People close to the fund said increased taxes for high earners and controversial new European financial regulations made it prudent to look beyond the UK.
Many industry experts are doubtful that London’s large hedge funds will change their corporate domicile completely, but BlueCrest’s move may herald a trend for part-relocations.
In depth: Future of London
The City’s struggle to maintain its reputation as a financial hub
London’s position as the top city for hedge funds after New York has begun to slip, according to a recent government-sponsored report.
Many UK managers worry that attracting talented employees from the US and Asia will be hampered by the UK tax regime and fears over pay restrictions.
The finance ministry of Sweden, which holds the EU’s rotating presidency, said the latest draft of the European alternative investment fund manager directive – expected this week – would include restrictions on hedge fund managers’ remuneration.
“The last six weeks have seen a significant ramping up in the number of London funds looking to move to Switzerland,” said John Lowry, chairman of hedge fund consultants ML Capital. “It’s a trend that is now definitely gaining momentum.”
Brevan Howard, London’s biggest hedge fund manager, said this year it could move up to 100 staff to Geneva.
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