Swiss Hedge Fund Recovery
Switzerland Luring Hedge Funds with Lower Taxes
Swiss hedge funds are growing more popular as Switzerland's government looks to lure hedge fund managers with lower tax rates than rival countries. According to a Zurich University study there are currently 125 single-manager hedge funds in Switzerland managing $14 billion across 71 firms.
Swiss managers rank third in Europe, with 4 percent of the market, behind London’s 75 percent share and Sweden with 5 percent. Brevan Howard Asset Management LLP, Europe’s biggest hedge fund, and third-ranked BlueCrest Capital Management Ltd. have both opened offices in Geneva this year.
“Heavy competition between cantons has helped to keep tax rates low,” making Switzerland more appealing, Regina Anhorn, one of the study’s authors, said in a presentation in Zurich. “We have seen famous names move part of their institution to Switzerland. We may see many more to come.”
There are signs that fees charged by Swiss hedge funds fell over the past two years, from a typical 2 percent management fee and a 20 percent share of performance, according to the study. A 1 percent management fee is “increasing in popularity” together with a performance fee of 10 percent, it said. Source
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