Hedge Fund Reader : Connecticut is the new home for Hedge Funds.

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August 15, 2005

Connecticut is the new home for Hedge Funds.

Hedge Funds are moving out of New York to Connecticut. There are several reasons for this move most important being the fact that Greenwich offers a very friendly tax structure of 5% as compared to 11.3% of New York. Add to this, the fact that many of the very-high net worth individuals reside there makes the move especially lucrative. According to some estimates, The Fairfield County is a house for almost 200 hedge funds with a total asset base of over $49 billion. The county also has support infrastructure such as law firms, technology firms and companies that cater to the hedge fund industry that make it more attractive for funds to settle down. Now over 20% of the entire commercial real estate is occupied by Hedge Funds. Even for fund managers, the county is a comfortable place to both live and work. The place also offers an opportunity to network with other managers and infrastructure service companies, including Cobb & Eisenberg, the only boutique law firm north of Manhattan specializing in the hedge-fund industry. A mass movement to the county was also observed right after 9/11 attack with funds moving there in search of a safe haven. All in all, the Fairfield County is being seen as an epicenter of hedge finds industry. Westchestercbj.com reports:

“Lower Fairfield County also has a few other advantages over Westchester. "Stamford, Conn., is considered more of a financial center than other suburban cities," such as White Plains, said Matthew Eisenberg, a member of the Cobb & Eisenberg law firm in Westport, Conn.”