Key Takeaways
- • Systematica, the hedge fund led by Leda Braga, plans to shift staff from Geneva to London in the coming months, according to Financial News.
- • Systematica has 44 employees in Geneva; the firm earns in U.S. dollars, and the weaker pound has made operating costs in England cheaper.
- • Systematica will expand its London staff while keeping its Geneva office open, according to the report.
- • The move is part of a broader trend of hedge funds returning to London, including Brevan Howard, which has asked some staff to relocate and whose co-founder Alan Howard moved to London for family reasons.
- • Man Group had 104 people in Switzerland in 2016, down from 365 five years earlier.
Summary
Hedge fund Systematica, led by Leda Braga, plans to move staff from Geneva to London in the coming months, according to Financial News, which reported the story behind a paywall. The rationale cited is cost. Geneva, where Systematica employs 44 people, has become more expensive, while London has become cheaper as sterling weakened following concerns over the U.K.'s future outside the European Union. Because Systematica earns its revenue in U.S. dollars, the weaker pound lowers its cost of operating in England. The report says London also offers a large pool of qualified staff willing to work for lower pay than in Switzerland. Systematica will expand its London headcount but will not close its Geneva office, according to the report.
Systematica is not alone in reassessing its location. Zug-based hedge fund Amplitude recently opened a London branch, reflecting London's importance to clients despite Zug's attractive tax rates. Brevan Howard co-founder Alan Howard also recently moved to London for family reasons, and the firm has ordered a number of staff to return to London. Brevan Howard had moved to Geneva in 2010 with a staff of 50.
The migration from London to Switzerland began after the financial crisis, when the U.K. raised taxes sharply while Switzerland offered favorable conditions for hedge funds. According to London-based headhunter Barry Seath of Mirage Recruitment, a growing number of hedge fund managers are looking to move staff back from Switzerland because they cannot find accommodation near good schools in Zurich or Geneva. Seath also noted that Geneva has some of the highest income taxes in Switzerland, a disadvantage that weighs against the canton. Man Group, Europe's largest listed hedge fund, has also reduced its Swiss presence, with 104 people in Switzerland in 2016 compared with 365 five years earlier.
Systematica is not alone in reassessing its location. Zug-based hedge fund Amplitude recently opened a London branch, reflecting London's importance to clients despite Zug's attractive tax rates. Brevan Howard co-founder Alan Howard also recently moved to London for family reasons, and the firm has ordered a number of staff to return to London. Brevan Howard had moved to Geneva in 2010 with a staff of 50.
The migration from London to Switzerland began after the financial crisis, when the U.K. raised taxes sharply while Switzerland offered favorable conditions for hedge funds. According to London-based headhunter Barry Seath of Mirage Recruitment, a growing number of hedge fund managers are looking to move staff back from Switzerland because they cannot find accommodation near good schools in Zurich or Geneva. Seath also noted that Geneva has some of the highest income taxes in Switzerland, a disadvantage that weighs against the canton. Man Group, Europe's largest listed hedge fund, has also reduced its Swiss presence, with 104 people in Switzerland in 2016 compared with 365 five years earlier.
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