It’s not a country in Central Asia but do you know where Hedgistan is?
Eight years ago, in 2005, a Wall Street Journal article cited Greenwich, Connecticut as the hedge fund capital of the country, if not the world, being home to many hedge funds and other financial service companies.
In the same year, CNN/Money also ranked Greenwich on top of the list of the 100 Best Places to Live in the United States while Money magazine ranked the town in the first place in the ‘Biggest Earner’ category.
And still, last year, Greenwich was considered as having the ‘wealthiest residents per capita’, compared to any other city or town in the country.
Hedgistan refers to the Greenwich area encompassing the Upper East Side and the midtown Plaza District. It is considered as the global hub of the hedge fund industry where one-tenth or more than $100 billion in hedge funds of the world are managed.
How did it happen?
In the 1990s, a number of professionals from Wall Street left Manhattan big firms to look for more affordable offices with lower property taxes and income taxes. They found Greenwich to be an ideal place and since then, the migration of business professionals has significantly raised the value of real estate in the town, especially the rent for commercial spaces. Today, prime spaces in downtown Greenwich cost higher than its Manhattan counterpart. For instance, an office space near a train station in Greenwich costs $70 per square foot compared to $55 in Manhattan today.
In fact, some of the biggest hedge fund management companies are based in Greenwich, which include Tudor, ESL, Lone Pine, AQR, Amaranth, Fairfield Greenwich, Pequot, SilverPoint, FrontPoint, Viking, and Andor, among others.
Greenwich hedge fund managers
While many big-time companies and hedge fund managers have managed to squeeze themselves into Greenwich prime offices, others were not able to find space for themselves. Naturally, the prestige of being in Greenwich can impress people and investors. But hedge fund management definitely does not depend on this alone as there are many good managers who can work comfortably from any location.
Take for instance, Jeffrey Arsenault who lives in Greenwich, Connecticut, yet holds office in Manhattan. He is the Founder and Principal of Old Greenwich Capital Partners who earned a reputation as an outstanding fund of funds manager, with a track record of superior risk-adjusted absolute returns.
He leverages an extensive network of industry contacts developed over his 25 years in the industry as well as his proven proficiency in research, manager selection and asset allocation.
Like others who belong to the new crop of promising hedge fund managers, Jeffrey Arsenault plans to get an office in Greenwich, much closer to his home, someday.