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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…