Hedgies The New Kings Of London Real Estate

Feb 3 2012 | 12:22am ET

In terms of residential real-estate, the City of London is set to cede pride of place to Mayfair.

West End financial professionals, many of them hedge fund managers, are set to outspend bankers from the City on houses this year for the first time. The hedgies and their neighbors are expected to drop £1.5 billion on houses in London costing more than £500,000. By contrast, City folks will spend just over £1 billion.

Hedge funders can credit their ascendancy to the drying up of bonuses in the City.

Until the financial crisis, "there had been a strong link between house price movements in the capital and bonus payments," real-estate consultancy Savills said. "But that link is now broken, and the market's dependency on City bonuses is much reduced."

In its place, "we are seeing early signs that international wealth can be replaced by new equity, particularly from the private offices and hedge funds—the West End cash generators," Savills' Yolande Barnes, head of residential research, said.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note