The Greed of London’s Hedge Funds
It seems that no matter how much money one accrues, they always want more. Well, at least that’s been the case for hedge funds around the world. Today however, those in London are getting a bit of a lesson in greed and perhaps they won’t be able to continue in this vein for all that much longer. Apparently they have now been told to “accept higher taxes as the cost of doing business in London and stop threatening to move elsewhere.”
Is There Any Defense for the Greed?
Things might not be quite as bad as they seem though. Maybe the capital city’s hedge funds are getting too much of a bad rep. That’s exactly what Michael Farmer would have us believe. Farmer is a Conservative Party supporter and donor who runs the Red Kite metals hedge funds (approximated at nearly $1bn) and he is a staunch defender of London. Rare in this position, the majority of hedge funders feel the government’s 50 percent top tax rate is hindering their capacity to “attract the best traders.”
Pay For What You Get
Bottom line? If you want the best then you have to pay for it. London has so much to offer hedge funds. From being “one of the world’s great capitals” to having a “stable political system, a developed legal system and process and the experience of being a world market place,” it’s not surprising the capital is charging so much. And given that hedge funds themselves are making a pretty penny, there really isn’t that much justification for noisy complainants.
Londoners’ Taxes?
What about the rest of the capital? How are others in London handling the tax situation? It’s not looking so good. Apparently there will be a post-tax freeze reality check meaning that the council-approved budget can’t guarantee that tax bills won’t inch upward somewhat. What this will mean is that Londoners will more-or-less be tricked, not knowing that there will be other bodies (beyond the council’s control) that can have this impact on property taxes). In addition, tax changes could likewise affect homeowners. Although apparently this should only affect homes that go up more than the average since the taxable assessed value of most London homes was raised this year. And indeed, there will be other homes that may even benefit from a tax decrease.
So London isn’t all about bad tax news today. True, some hedge funds in the capital may be bearing the brunt of some increases but there again they are privy to making money in one of the best corners of the financial world.