London still top for hedge funds

(Reuters): While banks may be thinking of moving their headquarters from the UK to dodge new regulations, London’s status as the centre of Europe’s hedge fund industry looks secure. The UK capital, second only to New York as a hedge fund hub, is even luring back some managers who decamped to Switzerland to escape heavier taxes and regulation. Executives cite London’s proximity to investors and service providers and the lifestyle it offers. "London is still the centre of the hedge fund universe in Europe," said Andrew Rubio, chief executive of Throgmorton, which provides back-office services for hedge funds including Brevan Howard, one of Europe’s biggest hedge fund firms. "It’s where the distribution channels and the networks are … If you want to be successful, you have to have a presence in the UK."

Some banks are considering moving their headquarters from the UK if the government brings in tough rules to try and avert another banking crisis.

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