New York City continues to dominate the US hedge fund industry, retaining its position as the epicentre of investing talent, even as Florida gains attention, according to a report by Business Insider citing a recent review of regulatory filings and industry insights.
While high-profile relocations of hedge fund headquarters to states like Florida and Texas have generated buzz, the vast majority of portfolio managers (PMs) and investment professionals remain concentrated in New York. A Business Insider analysis of ADV filings for major multi-managers like Citadel, Millennium, Point72, and others reveals that over 75% of US-based investment talent still operates out of the Big Apple.
Even firms headquartered outside New York, such as Citadel (now based in Miami) and Balyasny (headquartered in Illinois), have more investing professionals in Manhattan than in their official home bases. Similarly, Connecticut-based firms like Point72, Verition, and Hudson Bay also maintain a significant presence in New York.
Minnesota-founded Walleye Capital provides another example. The firm relocated its headquarters to New York in late 2023 and now employs more traders in its Manhattan office than anywhere else, underscoring the city’s magnetic pull for top investment talent.
Florida though, particularly Miami and West Palm Beach, has seen a surge in popularity among hedge fund executives, spurred by lower taxes, favourable weather, and a growing financial ecosystem. Data from Borealis Strategic Capital Partners shows that 11% of US hedge fund launches in 2024 took place in Florida, up from just 3% in 2020.
Ken Griffin, the billionaire founder of Citadel, moved his firm’s headquarters to Miami in 2022, citing the city’s growing appeal. Since then, Citadel and Citadel Securities have added roughly 400 employees in Florida and are preparing to break ground on a 54-storey waterfront headquarters.
However, while Griffin and some senior executives have relocated, the firm’s investment talent remains largely anchored in other cities. As of March 2023, Citadel had more investors in New York, Greenwich, Chicago, and San Francisco than in its Miami office.
