London to be New Home to Caxton Associates

August 1, 2019 James Heinsman Hedge Fund News

One of the world’s oldest and most famous hedge funds, Caxton Associates, is moving its headquarters to London form New York. The change is seen as a symbolic boost to the financial services industry of the UK as the consequences of Brexit creep closer.

Panorama of London courtesy of
© User:Colin / Wikimedia Commons / CC BY-SA-4.0

Caxton was founded in 1983 by Bruce Kovner, a legendary investor billionaire from the US. Founded in New York, with a large programming and back-office facility in Princeton, New Jersey, the fund manages $3.7 billion in assets. When Kovner retired in 2011, London-based Andrew Law took over the firm.

The London office has quietly been expending over recent years. During the last 18 months the Berkeley Square office, in the Mayfair section of London, has doubled to about 85 employees. The weakened pound, since the Brexit vote, has helped speed up the hiring process. The office in New York is quite a bit smaller.

“Investors do now generally consider us to be London-headquartered,” the firm said in a letter to investors.

Making the move official will surely stimulate the UK’s financial services industry, which has been living in the shadow of Brexit and its uncertain aftermath. Last year New York ousted London as the world’s highest ranked financial center, according to the research group Z/Yen.

Nevertheless, there has been other movement towards London. In 2017 Alan Howard, co-founder of Brevan Howard, moved his company back to the UK from Geneva. There has also been movement out of London, with Greg Coffey’s possible plan to move his firm from London to New York.
Another factor influencing Caxton’s decisions is its new commitment to environmental, social and governance-related issues.

“ESG is now a key theme,” the Caxton investor’s newsletter declared.

Brexit, Bruce Kovner, Caxton Associates, London, New York,

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