Why More And More Hedge Funds Are Moving To Palm Beach

Oceanside Condo Palm Beach

Photo: Zillow

The latest buzz on Wall Street is all about the migration of hedge funds to warmer, sunnier locales  — in particular, Palm Beach County in Florida. The county has created the Palm Beach County Business Development Board to help encourage and attract firms, especially those in financial services, to the area.

Kelly Smallridge, who runs the Palm Beach County Business Development Board, told the New York Post, “We’re not doing a multimillion-dollar marketing campaign. We don’t need to. They’re coming to us.”

The New York Post and Dealbreaker have discussed some of the reasons why hedge funds like Apex are moving down the coast.

People aren’t just going there for the fun and sun — Palm Beach also makes business sense, too.

Because Florida has no state income tax.

The New York Post highlighted this key fact, which can significantly increase one's take-home pay:

there's no state income tax in the Sunshine State. Compare that to New York, where the state and local governments took $14.71 of every $100 earned in 2010, according to state records.

Source: New York Post

Because the 'Bloomberg' factor is a good reason to get out of NYC.

The Real Deal reports 'more established firms are skittish about New York City, especially given the fear of less business-friendly policies in the post-Bloomberg era.'

The billionaire mayor leaves office this year.

Source: Real Deal

Say goodbye to your heavy coat -- the weather is gorgeous.

The chart to your right, which displays the average monthly high and low temperatures in Palm Beach, speaks for itself. For comparison's sake, the average temperature in Palm Beach is about 20 degrees higher than in New York City.

Source: Weather.com

Because it's easy to make contacts in Palm Beach.

As Evan Rapoport, CEO of HedgeCo.net, says 'Palm Beach County is one of the wealthiest counties in the country and I had a lot of investor contacts here, so for those who want to raise funds, (South Florida, and Palm Beach County in particular, is fertile ground).'

Source: World Property Channel

Florida is a better place to do business than New York.

In CNBC's ranking of the top states in America for business, Florida finished 29th, ahead of New York, which finished 34th. Florida was buoyed by its workforce, ranked third in the nation.

Source: CNBC

What's more, it's cheaper to live in Florida than New York.

The same CNBC ranking showed New York is one of the most expensive states in the nation, ranking 47th in that category. By contrast, Florida ranked 25th.

Source: CNBC

Because there's a wide variety of awesome cuisine.

For example, here's what a meal will cost you at Echo, which serves Asian fusion cuisine and was ranked the second-best restaurant in Palm Beach by Haute Living:

Appetizer: Seaweed Salad, $10
Entree: Thai roast duck with Asian vegetables, lychee, and red curry sauce, $26
Drink: A glass of Palazzo della Vittoria, Pinot Grigio, 2011, $9
Dessert: Molten Chocolate Lava Cake, $10

Source: Haute Living, Echo Palm Beach

Because the beaches just aren't this nice in New York.

There are 45 miles of pristine coastline in Palm Beach, where you can lounge in the sand or dip your toes in the Atlantic Ocean. That's a far cry from stepping on syringes at Rockaway Beach or making the trek out to Jones Beach.

Source: Parks & Rec

You'll be in the company of your fellow wealthy Americans.

Ratings agency Fitch 'described Palm Beach County as one of the nation's wealthiest counties, with per capita personal income levels nearly 50 per cent higher than state and national averages.'

The median household income in Palm Beach is in excess of $94,000, adjusted for inflation.

Source: Palm Beach Business Development Board, Yahoo

Your kids will go to a top-notch school.

The Palm Beach Business Development Board asserts that 'Schools in Florida are graded based on student achievement, and those in Palm Beach County are among the highest-rated in the state.' There's a plethora of private schools available, too.

Source: Palm Beach Business Development Board, Florida Smart

The recreational entertainment scene oozes pure class.

Palm Beach is home to the National Croquet centre, which at 10 acres is the largest of its kind in the country. There's no classier way to unwind after a long day at the office.

Source: National Croquet centre

Palm Beach also features an incredibly prestigious, exclusive golf club.

The Everglades Golf Club isn't a bastion of diversity -- it's a playpen for the wealthy. You'll have to shell out $100,000 to join, so it's a good thing you've got that extra take-home pay.

Source: Business Insider, Palm Beach New Times

There are some absolutely gorgeous homes on the market.

This mansion just went on the market for a little under $3 million. Zillow's Home Value Index shows that prices have come down significantly since the recession, but stands at a very robust $686,800.

Source: Zillow

Or, if you're looking for a bachelor pad, how about this oceanside condo?

This two-bedroom, two-bathroom condo goes for $250,000. Just look at that view!

Source: Zillow

Just over an hour away, one of the best trios in sports history tears it up on the court.

American Airlines arena, home of the 2012 World Champion Miami Heat, is just a short ride down the I-95. You'll get to see LeBron James (arguably the greatest basketball player of all time) up close, along with Dwayne Wade, Chris Bosh, and the rest of the team.

Or if baseball is your thing, neighbouring Jupiter is home to a few spring training facilities.

The Miami Marlins and St. Louis Cardinals call Roger Dean Stadium their home during spring training, which takes place from mid-February to early April each year. That's a great opportunity to see the young Marlins phenom Giancarlo Stanton.

Jupiter's just half an hour away north on I-95.

Because there's no shortage of hip clubs and other places to wet your whistle.

The scene in Palm Beach can get pretty wild. It's where you'll find clubs like Sub-Culture, which claims to be the longest-running night club in the South-Eastern United States.

If you're into more casual drinking, there are also some great happy-hour deals available.

Source: Sub-Culture, Go Time

There are plenty of high-class cultural events, if that's more your style.

Not only are the events high-class, they're also high end. For example, the upcoming 'Buddha Bowl' is described as 'An evening of enlightenment and nirvana where peace and tranquility prevail with cocktails, fragrant foods, mystical music, colourful dancers, and auctions.'

Tickets cost in excess of $1,000.

Source: Miami Herald

After a week in the office, you can go explore the great outdoors.

The 1.5 million-acre Everglades National Park, home to crocodiles and panthers, is one of the best places in America to go exploring. The park is about two hours away, but there's a much closer wildlife refuge about 45 minutes from Palm Beach.

Source: National Park Service

Palm Beach is much more safe than New York City.

Your odds of being the victim of a violent crime are 1 in 1056 in Palm Beach. That's nearly 10 times better than in New York City, where your odds are 1 in 126.

Because it's easy to travel anywhere, inside or outside the U.S.

Dennis Shaughnessy, Chairman of FTI Consulting, heaped praise on Palm Beach International Airport:

Air travel is also critical for us, and we've found that Palm Beach International Airport is one of the easiest airports in the U.S. for in and out access. Our visitors from out of town all rave about PBIA.

Source: Palm Beach Business Development Board

Maybe you want to leave the country all together?

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