Geneva, Switzerland (GenevaLunch) - The latest UK company to move hedge fund managers to Geneva is Blue Crest, Europe’s third largest hedge fund group, in a move that the Financial Times suggests heralds “a trend for part-relocations.” The company is moving 50 of its managers to Geneva, out of a head office staff of some 300. Blue Crest was created in 2000 and is worth $15.5 billion today.

The company plans to move staff at a time when the European Union is considering a pay cap for alternative investment managers; Switzerland has many bilateral agreements with the European Union but is not a member.

“Revenue earned by the management company – based on a 2 percent management fee and 20 percent performance fee on funds – was up 39 per cent in 2008, at $402m”, the Financial Times reported in August 2009.

Brevan Howard said in September it is considering moving 100 staff to Geneva or nearby Nyon, and the possibility that more hedge funds may consider Geneva rather than London because of high taxes for top managers remains a hot topic in the UK media. Ivan Pictet, speaking at a press conference in October for the Geneva Financial Centre, noted that Geneva remains a relatively small player in the world of hedge funds.

Links to other sites: Blue Crest, Financial Times, Reuters background on Blue Crest, June 2009

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