Hedge Funds Are Getting Priced Out in the World's Costliest CityBei Hu, Bloomberg May 25, 2017 The stigma of being based outside of Hong Kong's Central, the hub of business life for most of Hong Kong's history, is yielding to sober financial reality.Read Full Article »
Hedge funds don’t necessarily need to leave Central to save money. OCP Asia, a $1.3 billion manager that focuses on direct loans to small- and medium-sized companies, cut its rent by about 60 percent after moving to a 4,000-square-foot office in the Shanghai Commercial Bank Tower in Central from the nearby Landmark complex in September.
Benjamin Fuchs raised eyebrows five years ago when he opened his hedge fund next to a place selling live chickens in Hong Kong’s hustling, bustling Tin Hau neighborhood. It was akin to choosing Queens over Manhattan in New York -- or lowly Croydon over moneyed Mayfair in London. But nowadays Fuchs is no outlier. He’s part of a swelling exodus of hedge funds from the tony confines of Hong Kong’s Central district, home to luxury landmarks like the Mandarin Oriental hotel. The reason is simple: money.