The world’s greatest local newspaper has at last taken the time to fill one of the greatest lacuna in its 147-year history: How Greenwich came to be the world’s hedge-fund capital. Or, if not the de jure capital, at least the de facto one. Or, barring that, a nice place to live that’s close to the real hedge-fund capital and which has over the last two decades developed the kind of critical mass than even an increasingly unfriendly tax regime is unlikely to displace to Florida and where people can gather in posh places to discuss such groundbreakingly complex investment strategies like borrowing money to make meh returns look meh-plus, or, as the jargon as it, “leverage.”
It's Thursday night in Greenwich, and the sounds of wine glasses clinking and shoptalk reverberates through the hallowed halls of Indian Harbor Yacht Club as 200 hedge fund professionals mingle and sip. White collars crest over the top of expertly tailored suit jackets and fancy fountain pens rest in blazer pockets, ready to take down phone numbers or notes from a discussion about CalPERS's decision to stop putting California state pension money into hedge funds -- a limited partnership of investors that uses sophisticated methods, such as investing with borrowed money, in hopes of realizing large gains.
Just another night in a small town that, for many, is as definitively known as The Hedge Fund Capital of the World as Connecticut is known as The Nutmeg State.