Spare a thought for Michael Platt.
It’s not exactly the Caymans.
… The Guernsey cow is a more internationally famous icon of the island. As well as being prized for its rich creamy milk, which is claimed by some to hold health benefits over milk from other breeds.
There is also a breed of goat known as the Golden Guernsey, which is distinguished by its golden-coloured coat…
It is, however, halfway – sort of – between London and Geneva.
Mr Platt – the founder of London’s third largest hedge fund, BlueCrest – has taken the decision to relocate the firm’s HQ from Grosvenor Place to the middle of the Channel, as reported by the FT on Friday.
The move is, of course, strictly legalistic. The new home of BlueCrest will house but a handful of employees, and Messrs. Platt, Cox, Dehadray, Dodd, Sambrook and Mmes. Braga and Kerridge - members, all, of the firm’s executive committee – need only spend a few hours a year meeting on the Island.
Besides, it’s not without precedent. Brevan Howard, Europe’s largest hedge fund, has operated under a similar arrangement for some time. And plenty of private equity-types have made do on the Balliwick too.
Alas, such is the price of zealous overregulation and taxation — at least, from BlueCrest’s point of view.
More interesting even than Golden Guernseys, however, are details on BlueCrest’s already reported-upon move of some staff to Geneva. These were contained in a letter to investors sent out yesterday (the letter can be read in full here, via the Long Room). The move, it seems, is far more significant than earlier realised.
For starters, the entire systematic trading team – the brains behind BlueTrend, the AHL-beating algo-trading $10bn monolith – are upping sticks to Geneva. BlueTrend – run by the firm’s resident super quant Leda Braga - is BlueCrest’s flagship fund in all but name.
Joining them are all of BlueCrest’s credit traders, as well as a significant portion of those from the rates, relative value and fx desks.
The only trading desk left intact at London is mercantile.
If nothing else, then, the move is proof that the mobility of talent in the hedge fund industry is genuine. Hedge fund managers of Mayfair who have resisted considering a move abroad in recent months, on the basis that most of their staff wouldn’t really fancy it when push came to shove, may now have cause to reconsider.
Indeed, as BlueCrest’s letter noted in conclusion:
Our trader hiring so far in 2010 has resulted in further additions, in London, in Rates and Emerging Markets, and we are in active discussions with others for whom the prospect of a Geneva location is a significant attraction vs other opportunities – so already the benefits of a diversified business establishment are being felt.