CT Hedge Fund Industry 2016
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Transcript of CT Hedge Fund Industry 2016
The$Hedge$Fund$Industry$in$ConnecticutFebruary$2016
Prepared$by$The$Connecticut$Hedge$Fund$Association,$with$assistance$from$the$Greenwich$Chamber$of$Commerce
The$Global$Hedge$Fund$Industry
Global$Hedge$Fund$Industry
• $3tn$in$AUM
• $355bn$added$in$2014
• +764$new$funds$created$in$2014
• F260$funds$closed$ in$2014
• 3$out$of$every$4$$$is$now$from$institutions
• China$Investment$Corp.$is$largest$HF$investor$in$AsiaFPacific$region$($26bn).
Global$Hedge$Fund$Industry
61%21%
14%4%
Breakdown$of$Managers$by$Location
North$America
Europe
AsiaFPacific
Rest$of$World
Global$Hedge$Fund$Industry
Manager$Headquarters Assets$under$Management$($bn)North$America 1,923
Europe 560
AsiaFPacific 112
Rest$of$World 69
Hedge$Fund$Assets$by$Regional$Location
Global$Hedge$Fund$Industry
Manager$Country$Location Assets$under$Management$$($bn)US 1,893
UK 440
Brazil 51
Hong$Kong 47Sweden 39
France 34
Australia 33
Canada 26
Switzerland 25
Singapore 21
Breakdown$of$Hedge$Fund$Manager$Assets$by$Country$Location
The$US$Hedge$Fund$Industry
The$US$Hedge$Fund$Industry• Started$in$1949$with$A.W$Jones$in$New$York.
• Home$to$8,500$hedge$funds,$managing$over$$1.7tn$(over$70%$of$the$global$hedge$fund$industry).
• 46$of$the$50$states$have$some$hedge$fund$activity.
• 95% of$US$hedge$fund$assets$managed$from$10$leading$states.
• 40% of$USFbased$hedge$funds$are$in$New$York
• 55% of$all$institutional$ capital$invested$in$hedge$funds$globally$ is$from$USFbased$institutional$ investors.
The$US$Hedge$Fund$Industry
Number$of$USFBased$Hedge$Fund$Managers$and$Hedge$Fund$ Investors$by$State
The$US$Hedge$Fund$Industry
AUM$of$US$Based$Funds$of$Hedge$Funds$by$Manager$State
New$York
Connecticut
Illinios
California
Penn
Texas
Washington
Virginia
Florida
NY
CT
The$US$Hedge$Fund$Industry
State AUM$($bn)New$York 838
Connecticut 334California 155
Massachusetts 128
Illinois 76
Texas 53
New$Jersey 36
Minnesota 31
Florida 22
Penn 7
Hedge$Fund$Industry$Trends$&$Challenges
• Institutionalization$(3$of$every$4$dollars$invested$is$now$from$institutions).
• Regulation$(SEC$registration$and$AIFMD$in$Europe).
• Largest$hedge$funds$attracting$most$of$the$assets.
• Liquid$alternatives
Connecticut’s$Hedge$Fund$Industry
Connecticut’s$Hedge$Fund$Industry• At$$334bn,$CT$has$the$second$largest$hedge$fund$industry$in$the$US.
• CT$is$the$third$largest$center$for$hedge$funds$globally$by$AUM,$behind$only$New$York$and$the$UK.
• Proximity$to$New$York,$a$more$favorable$tax$regime$compared$to$New$York$or$New$Jersey,$and$quality$of$life$makes$CT$an$attractive$location.
• The$hedge$funds$in$Greenwich$and$the$surrounding$towns$(especially$Stamford)$represent$an$“industry$cluster”.$$
• There$is$a$larger$business$ecosystem$that$has$grown$up$to$service$the$hedge$fund$firms.$$These$service$firms$include,$investment$banks,$law$firms,$accounting$firms,$fund$administrators,$custodian$banks,$technology$firms$and$more.
• The$Connecticut$Hedge$Fund$Association$was$established$in$2004$and$now$has$over$4,000$individual$members.
Connecticut’s$Hedge$Fund$Industry
Firm City/Town AUM$($bn)Bridgewater Associates Westport 151.5
AQR$Capital$Management Greenwich 24.9
Viking$Global$Investors Greenwich 18.2
Three$Largest$ConnecticutFBased$Hedge$Fund$Managers$by$Assets
Connecticut’s$Hedge$Fund$Industry
Sample$List$of$Connecticut$Hedge$FundsAQR$Capital
Bridgewater$Associates
Chilton$Investment$Co.
Discovery$Capital
Ellington$Management
K2$Advisors
Lone$Pine$Capital
Tudor$ Investment$Company
Viking$Global
Town$of$Greenwich
Greenwich:$Overview
• Settled$in$1640.
• Located$within$Fairfield$County,$Connecticut
• Population$of 61,000,$with$an$average$density$of 930/mi2 (360/km2).
• Area$of 48$square$miles.
• Located$30$miles$northeast$of$New$York$City.
Greenwich:$Transportation
• Located$30$miles$northeast$of$New$York$City.
• 2$interstate$highways.
• 3$airports$service$Greenwich.
• Metro$North$commuter$rail$from$and$to$NYC.$(less$than$50$minutes$travel$time)Fimportant$for$younger$reverse$commuters.
• Four$train$stations.
Greenwich:$Quality$of$Life• 32$miles$of$coastline.$$A$boater’s$haven.
• 20$parks.
• 11$elementary$schools,$3$middle$schools$and$1$punlichigh$school;$six$private$schools.
• 14$private$clubs.
• Fabulous$shops$and$restaurants$on$Greenwich$Avenue.
• Numerous$cultural$options$including$Greenwich$Symphony,$Greenwich$Choral$Society,$Bruce$Museum$and$local$art$galleries.$
Greenwich:$Taxes,$Real$Estate$&$Business
• State$income$tax:$$Top$personal$income$tax$rate$of$6.7%$(vs.$8.9%$in$NYC)
• Greenwich$property$taxes:$$Greenwich$property$tax$rates$are$11.31$(mills).$$Property$taxes$in$Greenwich$are$some$of$the$lowest$in$the$state.
• 4,805,432$square$feet$of$Class$A&B$office$space.
• Average$rent$(Class$A)$is$$66.73
• Over$6,000$diverse$businesses;$including$one$of$the$worlds$largest$concentration$of$hedge$funds,$earning$Greenwich$the$nickname$“hedge$fund$capital$of$the$world”.