Wednesday, 24 August 2016
Last updated 3 hours ago
Nov 10 2011 | 9:31am ET
The hedge fund community of Greenwich, Conn., is feeling the pain.
Hedge fund managers and executives pushed out of work by the economic crisis are leaving the tony New York suburb, which is also the epicenter of Connecticut's hedge fund industry, the third-largest in the world. Unfortunately for them, selling their pricey digs is getting harder and harder, the New York Post reports.
The number of houses in Greenwich valued at $8 million or more that are listed and unsold rose by one-third recently, according to a Prudential Connecticut Realty report.
"About 10% of those homes have been built on spec," John Cooke, head of Prudential Connecticut, said. Worse still, even though "people here don't want to talk about what kind of troubles they may be in," at least one hedgie home has been foreclosed on, and others may follow.
"It's very sobering when you don't have that seven-figure paycheck anymore," Gary Cella, an adviser to the hedge fund industry, told the Post. Cella said he knows of one unemployed hedge fund manager whose $3 million home was foreclosed, leading its former occupant to pick up sticks and return to his native California.
"They're even turning back leases on their luxury cars because they can't afford those, either," Cella added.