BlueCrest Capital Management is leaving London, but not for its new Swiss office.
The US$18 billion hedge fund has moved its headquarters to the Channel Island of Guernsey. The firm cited impending European Union hedge fund regulation—despite being a dependency of the British crown, the Channel Islands are not a part of the EU—and the increased risk of greater regulation in a single jurisdiction for its decision.
In a letter to investors yesterday, BlueCrest founder Michael Platt did not cite increased taxes on the highest earners in the U.K. as a reason for the move. But the relocation became effective on April 1, only days before the new tax rate kicked in.
“BlueCrest has implemented this reorganization to reflect the increasingly global nature of our business, and to ensure the safeguarding and enhancement of our industry-leading human capital base,” Platt wrote.
Platt also offered further details about his firm’s planned Geneva office, which it announced last year. BlueCrest’s alpine digs will house about 70 employees, mostly investment professionals, including Platt, part-time.
The firm’s founder and Leda Braga, who manages its flagship BlueTrend fund, will split their time between Geneva and London. The BlueTrend team will be based in Switzerland. The firm’s credit trading team will also move to Geneva.