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Bloomberg - Office rents in Mayfair and St. James’s, the London districts with Europe’s biggest concentration of hedge funds, are falling for the first time since 2005 as the alternative investment industry has its worst year in two decades.
The cost of renting new or refurbished offices in those neighborhoods, the most expensive in the world, fell 6.5 percent to 107.50 pounds ($168) a square foot in the six months ended Sept. 30, data compiled by Jones Lang LaSalle Inc. show. Incentives such as rent-free periods lowered the net figure to 95.96 pounds, the commercial property broker estimates.
Demand for space is falling as at least 350 funds in the $1.7 trillion hedge fund industry have closed this year amid the global financial crisis, including Peloton Partners’ ABS Fund and MKM Longboat Capital Advisors’ Multi-Strategy Fund. Client redemptions and forced asset sales have given investors losses for five straight months through October, the longest streak since 1990, and the slump may push rents down to as low as 90 pounds a foot, Jones Lang of Chicago estimates.
Choregus (London) - It seems that West EndOffice Space in not impervious from the effects of the global economic slow down.
Whilst many had observed the West End continuing to perform despite the pressures, it seems that the credit crunch in finally starting to bite. CBRE are reporting a 3.2% fall in rental values in the West End office market, with prestigious areas such a Mayfair and St James falling 4.2% to £115 per square foot.
In recent years the West End has been popular with private equity and hedge fund companies, who seek premium office space in prestigious locations. However, while the City office market has been contracting in the past year, the West End had hitherto been holding up rather impressively.
Reuters UK - Britain’s temporary ban on short-selling financial stocks is irksome for London’s hedge funds and is another factor which could help undermine the city’s pre-eminent position in Europe as a hedge fund base.
Short-selling is a key trading strategy for hedge funds as they aim to profit regardless of whether a stock is rising or falling, but London’s curbs come as rival centres seek to attract hedge funds to bolster their financial sectors.
Switzerland, France, Luxembourg and Scandinavia have all begun to emerge as alternative options for hedge funds looking for lower tax and a higher quality of life.
The European industry could follow the U.S. model and develop in a number of regional centres, although London’s upmarket St James’s and Mayfair districts are likely to remain the heart of the industry in Europe for at least the time being.
Times Online - Why did HBOS need to be rescued by Lloyds TSB? Where should the finger of blame point?
For many, the answer is clear - Mayfair.
The streets of London W1 house some of the world’s biggest hedge funds, which now stand accused of bringing HBOS and other financial institutions to their knees.
Their weapon? Short-selling, the process of betting that a share price will fall.
BBC News- Hedge funds tend to be based well away from London’s financial hotspots such as the City and Canary Wharf, in districts such as Mayfair.
But his employer, Lionhart Investments, is based next door to the golf club in Wimbledon.
It is a relaxed environment on the edge of Wimbledon Common, where at least one mobile phone network has no signal at all, but do not let that fool you.
"I have a mobile phone that rings all the time - and on family holidays, it quite often becomes a source of contention," he says.
Times Online- Arpad Busson was 10 minutes late. As the 44-year-old financier (who is also actress Uma Thurman’s boyfriend) hobbled through the door of his Mayfair boardroom, it became apparent why.
“I’ve done my back in,” said Busson, in a hoarse French accent. The injury is an old one acquired on the ski slopes.
Born in France and educated “between France and Switzerland”, Busson skied as soon as he could walk. At the age of 13 he begged his mother to let him go professional — in downhill racing — but she wouldn’t allow it.