Schonfeld Plans New Florida Hub as Hedge Funds Move South
(Bloomberg) -- Another hedge fund is putting down roots in tax-friendly Florida.
Schonfeld Strategic Advisors is opening an office in the Sunshine State that will serve as its second headquarters for about 100 staff, according to Ryan Tolkin, the firm’s chief investment officer.
“The initial build-out will be about 50 people over the next 12 months,” which will be about evenly split between New York relocations and new hires, he said in an interview. The firm picked South Florida because its education, housing, cost of living and quality of life are attractive to future talent, said Tolkin, who is also Schonfeld’s chief executive officer.
The New York-based firm is the latest hedge fund to set up shop in Florida, alongside rivals Elliott Management, D1 Capital Partners, Citadel, Balyasny Asset Management and Millennium Management. Key to the state’s allure is its lack of an income tax. By contrast, New York City’s wealthiest now face the highest state and local rates in the U.S.
Still, Schonfeld isn’t planning to abandon the New York metro area: In fact, it’s more than doubling its office space to 60,000 square feet. The firm is moving its primary headquarters to 590 Madison Avenue where it has snapped up two floors. It still plans to keep its Park Avenue location. It’s also opening locations in Connecticut and New Jersey.
The changes will bring offices closer to employees and help reduce commute times. Staff will have some flexibility to decide where they work. They’ll need to spend about 70% of each month in offices of their choosing.
“A big part of that will be improving happiness and improving people’s work-life balance, which we feel will ultimately enhance productivity,” Tolkin said.
The real estate grab is the latest step in Schonfeld’s rapid expansion and hiring spree. The firm started 2020 with 400 people and has since expanded by about 200. By year-end, Tolkin expects Schonfeld will have 700 employees globally.
Client assets at the multi-manager firm soared by $3 billion since July 2020, and that’s after raising $1 billion for its flagship fund. Schonfeld’s flagship Strategic Partners Fund gained 8.8% in the first half of this year.
The new Florida office will house quant technology and operations teams, as well as investment staff, in the fast-developing Wynwood area of Miami.
As of July 1, Schonfeld ran $8.8 billion in outside cash along with the personal wealth of billionaire founder Steven Schonfeld.
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