$10 Billion Hedge Fund Opening Miami Office As Rich Flee High-Tax States
October 7, 2018Bloomberg Report – Moore Capital Management is opening a Miami office next year as more wealthy investors move to Florida and other lower-tax states following the U.S. tax overhaul.
The office will initially house Andrew Tytel, a portfolio manager who has been at New York-based Moore Capital for 10 years. Three analysts and an office manager will join him, according to a person familiar with the firm.
The change in federal tax laws — which cap state and local tax deductions at $10,000 — has led wealthy people in high-tax states like New York and Connecticut to decamp to Florida and Texas, where there is no state income tax. Other investment firms have already set up offices in the Sunshine State. Private equity firm I Squared Capital announced plans to open an office in Miami this year and real estate investor Barry Sternlicht said he will move his Greenwich-based Starwood Capital Group to Miami Beach by 2021.
While Tytel asked to move the Florida, Moore executives believe a Miami office will help keep and attract investment professionals who want to move there. They don’t expect the office will be very large, but will assess its growth over the next six to 12 months, depending on performance of the portfolio managers there, the person said.
Moore, which manages $10.2 billion, has shed about $3 billion in assets since July 2017 as clients fled. Its main funds haven’t returned more than 6 percent a year since 2013.
The Moore Global Investments fund is down 1.8 percent this year through Sept. 13, and the multi-manager Moore Macro Managers has climbed 1.6 percent in the same period.
The firm’s founder, Louis Bacon, who splits his time between London and New York, has no plans to move to the new office, the person said.
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Fund Managers Are Ditching Wall Street for Florida
(Bloomberg article)