• 29 Jan 2013 at 12:41 PM

Palm Beach County is the Next Great Hedge Fund Center

It’s true, according to a county official, two hedge fund service providers based there and the New York Post.

An increasing number of financial firms, especially private equity and hedge funds, are fed up with New York’s sky-high city and state tax rates and are relocating to the business-friendly climate in Florida’s Palm Beach County.

And they’re being welcomed with open arms — officials in Palm Beach recently opened an entire office dedicated to luring finance hot shots down south.

But wait, you say: Didn’t another Rupert Murdoch newspaper recently tell me that all of the hot young hedge funds want to be in New York because lazy institutional investors aren’t interested in driving to Connecticut (or, presumably, flying to Florida) to meet with them? And wasn’t that story backed up with statistics and interviews with several actual hedge fund managers?

Yes. But listen instead to the anecdotal evidence offered up by the totally unbiased head of the Palm Beach County Development Board.

“We’re not doing a multimillion-dollar marketing campaign. We don’t need to,” said Kelly Smallridge, who heads the Palm Beach County Business Development Board, which set up the special unit to handle inquiries and marketing.

“They’re coming to us.”

Without warning, Smallridge said, her organization only recently started getting inundated with hedge-funders.

“The door was open because of the high-tax environment” in the New York area, Smallridge said.

Not convinced? Blinded by the fact that more billion-dollar hedge funds choose such high-tax homes as New York, Connecticut, Massachusetts, California, Illinois, New Jersey and Minnesota? Or that Texas seems a more popular home for hedge fund managers not interested in paying higher taxes? Or that Brazil is also home to more billion-dollar club members than the Sunshine State?

Well, yes, but, listen to the heads of a hedge fund administrator and a hedge fund database company, the Post responds. (An actual hedge fund manager recently relocated or relocating to Florida was apparently unavailable.)

“Florida is a state of choice,” said Thalius Hecksher, global development chief for Apex Fund Services, who moved many of his operations to Palm Beach. “It’s organically grown. There’s no need to drag people down here. It’s a zero-income-tax jurisdiction.”

“You weigh all of the benefits for being here to those in New York, and they outweigh them every time,” said Evan Rapoport, CEO of HedgeCo.net, which is expanding its presence in Palm Beach County….

“In our industry, the people we’re talking about are $1 million-a-year earners. So when you’re talking about tax rates, it’s more meaningful.”

“Then,” he said, echoing Hecksher, “there’s the lifestyle issue.”

I’m sure you’ve bought your plane ticket already. If you haven’t, the code for Palm Beach International is PBI. Daily flights from Kennedy, La Guardia and Newark available on JetBlue.

‘Wall St.’ flees NY for tax-free Fla. [N.Y. Post]

50 comments (hidden to protect delicate sensibilities)
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Comments (50)

  1. Posted by Clyborne | January 29, 2013 at 12:48 PM

    Strictest drug laws in the country in Florida just sayin

  2. Posted by Guest | January 29, 2013 at 12:49 PM

    Super cool story Shazar.

  3. Posted by Guest | January 29, 2013 at 12:49 PM

    Don't Shaze me bro

  4. Posted by Guest | January 29, 2013 at 1:02 PM

    Oh. I see you're back.

  5. Posted by NYC Hater | January 29, 2013 at 1:04 PM

    {Palm Beach > NYC | family guy }

  6. Posted by PermaGuestII | January 29, 2013 at 1:04 PM

    Unedited version: "'Then,' he said, echoing Hecksher, 'there’s the lifestyle issue. I mean, who wouldn't want to live the life of a 75-year-old retired Mercedes-Benz dealer from Tenafly, NJ?'"

  7. Posted by Guest | January 29, 2013 at 1:10 PM

    Florida is filled with donkey fucking squirrel molesters. So, I feel this is not the appropriate place for men of class.

  8. Posted by Guest | January 29, 2013 at 1:13 PM

    So I see you've been to Fir Tree's offices

  9. Posted by Dr Guest | January 29, 2013 at 1:25 PM

    Hey, why don't you just come over here and rest on this shaze lounge.

  10. Posted by Guest | January 29, 2013 at 1:31 PM

    Will you have a shaze with that haircut?

  11. Posted by NYAC Member | January 29, 2013 at 1:36 PM

    Word.

  12. Posted by Guest | January 29, 2013 at 1:37 PM

    Florida is the best place to go for fresh brainzzzz

    -Boca Zombie

  13. Posted by r scott | January 29, 2013 at 1:40 PM

    ahh a ny snob.. let's all pretend ny doesn't smell like piss half the year and isn't full of welfare queens.

    palm beach island >>>>>>>>>>>>>>> your 400sq/ft studio in les

  14. Posted by VonSloneker | January 29, 2013 at 1:49 PM

    As if the Breakers wasn't full enough of obnoxious snowbird New Yorkers.

    – Guy who is decamping to Naples

  15. Posted by anonhfm | January 29, 2013 at 1:53 PM

    Texas Hedge Fund Association dinner next week in Austin — I'll let you know how many new faces I see.

    – guy who pays no state income tax but still waits "on line:"

  16. Posted by White Lexus Driver | January 29, 2013 at 1:58 PM

    As long as you filthy New Yorkers stay on the East Coast (La Republica de Miami) we'll get along just fine.

  17. Posted by Guest | January 29, 2013 at 2:05 PM

    Houston > Palm Beach > Lebanon

  18. Posted by Guest | January 29, 2013 at 2:13 PM

    Agreed and the Midwesterners make me look thin.

    – Out of shape guy from CT

  19. Posted by VonSloneker | January 29, 2013 at 2:22 PM

    Meet me at Maggie Maes. Wear a "Saw 'em Off" tshirt so I know it's you.

  20. Posted by guest | January 29, 2013 at 2:26 PM

    Liberals will never get it!

  21. Posted by Guest | January 29, 2013 at 2:27 PM

    Shazar, how many buy side people do you know that want more, not less, client meetings? Client meetings are for IR girls and functionaries.

  22. Posted by Chazzy Money | January 29, 2013 at 2:28 PM

    I've got…….TWO tickets to powadice!!!!
    Palm Beach County it'll be so niiiiice!

    -Thank me in advance for the song that is now in your head ….

  23. Posted by PermaGuestII | January 29, 2013 at 2:33 PM

    Let's all pretend Palm Beach County, FL consists *solely* of Palm Beach, isn't hotter than Hades for 6 months of the year, and doesn't harbor interesting wildlife such as 8 foot long carnivorous lizards.

    -Guy who possesses a [SHIFT] key, hasn't noticed many welfare queens in NY 10021, and thinks there's a point as to why "seasonal" resorts are seasonal.

  24. Posted by Guestie | January 29, 2013 at 2:44 PM

    Rachel's > Beamer's < FDs?

  25. Posted by Guesteeculos | January 29, 2013 at 2:49 PM

    Dick Clark's rotting corpse would have done a better job in that commercial.

  26. Posted by Laxbro | January 29, 2013 at 3:07 PM

    10021? Do you also buy your fresh fruit from the Korean on Madison?

  27. Posted by Anonymous | January 29, 2013 at 3:22 PM

    10013 mothafucka!

    that is all.

  28. Posted by Guest | January 29, 2013 at 3:39 PM

    Hotter than hades for six months with an ocean 5 minutes away > hotter than hades for 3 months wedged between the hudson and east rivers, choking on the smell of rotting garbage, paying 10% of your income in taxes for the privilege.

  29. Posted by Guest | January 29, 2013 at 3:42 PM

    I don't know about palm beach, but agreed. In the time it takes to get from the hospital back to your apartment after your first child is born, 90% of what you used to like about NYC becomes stuff you don't care about, or actively dislike, about NYC…

  30. Posted by Guest | January 29, 2013 at 3:49 PM

    Vs. NYC, filled with 30-something wealth eroders pretending to run money or give corp fin advice, and never. shutting. up. about it. That's a toss up.

  31. Posted by R Scott Ritzgerald | January 29, 2013 at 4:43 PM

    Palm Beach Island > 400sq ft studio in LES > R. Scott Felcherbiter's doublewide

  32. Posted by Clara Fye | January 29, 2013 at 4:56 PM

    Who / what is white — you or the car?

  33. Posted by IR Girl Grammarian | January 29, 2013 at 5:09 PM

    fewer. There I fixed it for you.

  34. Posted by PermaGuestII | January 29, 2013 at 5:19 PM

    There's an interesting concept around here called a "summer house." It usually involves a property within 1-2 hours drive/train ride/boat ride from Manhattan. Such properties are often located adjacent to salt water. Look into it and report back to me.

  35. Posted by PermaGuestII | January 29, 2013 at 5:21 PM
  36. Posted by Guest | January 29, 2013 at 5:35 PM

    1-2 hours away? Careful whom you brag to about your "summer house" in Rockaway.

    Oh, and if you're driving? Five/six hundred a month to park your car, and last I checked, they charge you all year, not just the three months you leave for the beach every weekend.

  37. Posted by Ping Capital | January 29, 2013 at 5:41 PM

    Go on.

  38. Posted by Jerry Springer | January 29, 2013 at 5:45 PM

    We love you Florida! Without you I wouldn't have any material and I would just be some poor hack. Now I am a rich hack with lots of viewers. I LOVE you Florida. You are the source of so much rich material in the areas of brother/sister/mother/babydaddy/sugarbaby love! Keep on keepin' on….

  39. Posted by Guest | January 29, 2013 at 5:54 PM

    And that is why I have you to meet with pedantic buffoons in midtown while I work peacefully 1,300 miles away in the land of sunshine and no state income tax. Fewer headaches for me, more dinners with creepy CIOs for you.

  40. Posted by Guest | January 29, 2013 at 6:08 PM

    3 minute walk to beach > 4 hour commute on the LIE

  41. Posted by Guest | January 29, 2013 at 7:05 PM

    Congratulations!

  42. Posted by IR Girl Grammarian | January 29, 2013 at 7:14 PM

    Clients are awful. They just don't see how smart you are.

  43. Posted by Guest | January 29, 2013 at 8:09 PM

    You must want your kids to be gay.

  44. Posted by Guest | January 29, 2013 at 8:13 PM

    Rachel's > Mons > anything in the city.

    –D.O.U.G

  45. Posted by from Wellington, FL | January 29, 2013 at 10:47 PM

    Ewww Naples?

  46. Posted by Mrs_Slocombe | January 30, 2013 at 7:48 AM

    Thank god Shazaroramus provided the PBI code for those Jet Blue flights—how would a BSD Hedge Fund Manager ever figure out how to get there. Oh, I forgot, he calls his Pilot-in-Charge and tells him to fire-up the Jet, ‘cause he'll be there in 45.

    Apparently, Shazaroramus hopes his insightful reporting will guarantee his follow-up post: New York City and State taxes deprive Million Dollar Hedge fund earners use of NetJet shares.

  47. Posted by San Diego | January 30, 2013 at 12:04 PM

    Fuck you both.

  48. Posted by Guest | January 30, 2013 at 12:05 PM

    The elderly are fresh?!? Ummm ok.

  49. Posted by Guest | February 3, 2013 at 6:34 AM

    The correct retort was a simple: "What's a 'JetBlue?'"

    Amateurs.

  50. Posted by Guest | February 23, 2013 at 11:49 AM

    Actually, you Yankee financial pussies are too soft to survive down here. There are more than 1,000,000 of us with concealed weapons permits and you dicks have no real world weapons experience. Go ahead, open your mouth you fat guido fuck, we'll plug you and claim SYG so fast your happy widow's eyes will spin.