Hedge Funds BlueCrest Said to Prepare Geneva Office as London Taxes Rise

Discussion in 'Wall St. News' started by ASusilovic, Nov 12, 2009.

  1. Nov. 12 (Bloomberg) -- BlueCrest Capital Management Ltd., a London-based hedge fund firm that oversees about $15.4 billion, plans to open an office in Geneva as increased taxes and regulation make London a less attractive location, a person familiar with the situation said.

    As many as 50 BlueCrest employees may move, said the person, who declined to be identified because the plans are confidential. The firm has about 300 employees in London.

    Hedge funds are threatening to quit the U.K. for Switzerland as the government raises taxes rates for top earners and European regulators impose new rules on funds overseeing more than 100 million euros ($150 million). The British capital is home to at least 80 percent of Europe’s estimated $400 billion in hedge fund assets.

    BlueCrest follows Brevan Howard Asset Management LLP, Europe’s largest hedge fund manager, which said in September it may open an office in Switzerland. BlueCrest was started in 2000 by former JPMorgan traders Bill Reeves and Mike Platt. The firm is 26 percent owned by London-based Man Group Plc, the largest publicly traded hedge fund manager.

    The Financial Times reported the move earlier today. Caroline Villiers, an spokeswoman for BlueCrest in London, confirmed that the firm is considering plans to open in Geneva.

    The U.K. government is preparing to raise taxes on residents earning more than 150,000 pounds a year to 50 percent from 40 percent. Last year, the government introduced a fee of 30,000 pounds for non-domiciled residents who had previously escaped the U.K. tax system.

    The European Union is preparing rules for hedge funds that will limit the amount they can borrow as well as force them to use banks domiciled in Europe. London’s Mayor, Boris Johnson, said in September the rules may let countries such as Switzerland “to claim business and jobs that would otherwise stay in the European Union.”


  2. Taxes in the UK (and the rest of the G7) will skyrocket. 50% is nothing yet. What about 60 or 70% marginal top tax rates?
  3. Vamos a Switzerland ! :)
  4. sdb5057


    This is great for me since I am a Swiss dual citizen. Time to dust off that passport and head for the promised land..
  5. How the UK views Hedge Funds:

    HF = milk cow

    man = govt

    cat is those receiving the redistributed wealth...

    Problem is, govt is also slaughtering the cows to get the meat at the same time...

  6. the UK is turning into the absolute taxation land. A few days ago the government increased the taxes levied on airplane tickets. Do you know the taxes you pay for an economy ticket to the US?

    GBP 201, yes, that's 330 bucks that goes into the pockets of the Government.

    Do you think those taxes are levied for environmental reasons? Not at all.

    Mr. Darling acknowledged last week that the airport taxes were part of the bank bailout!!!


    Stealth taxes are being introduced everywhere.
  7. Suss, forget about taxation issues! Are you getting an allocation from them? :eek:
  8. this is nuts! their gonna destroy london as a financial hub!

    their politicans are so into the bash the rich theme to gain votes, this can't be a good argument for democracy,
  9. No, not yet from BlueCrest, but other billion + shops are waiting in the queue.

    Lately, one of them requested "total transparancy" into every single managed account that we trade. Compliance officer requirement....Good joke ! :D :D :D

  10. Worst analogy ever
    #10     Nov 13, 2009