HERE'S a new one for the hedgie lexicon: Valletta. The capital of Malta is not yet on a par with Mayfair or Geneva but it is fast becoming a second home for many of London's hedge funds.
Confused? Let me explain. The country offers all the perks of being offshore — low taxes and a favourable regulatory regime — but it's part of the European Union, which makes investors comfortable about handing over huge wads of cash. The operating costs are also seriously low. "Running an office there costs half as much as the rest of Europe — it's a poor man's Geneva," said one manager.
I'm told that the hedgies are colonising the waterfront offices in Valletta and the pretty resort town of Saint Julians — they always get the best bits. About 20 London-based firms set up an office there last year, including the £1 billion oil traders Bluegold, Pamplona Capital and Liongate. So, what do you do in Malta? A country that seems to be famous for two things: its honey (special because it hosts a unique species of bee) and because the artist Caravaggio spent 15 months there. "It's good for boating and fishing," said my local spy this weekend. "The weather is nice, it's not snowing here." There you have it: move to Malta because . . . it's not snowing.
http://business.timesonline.co.uk/tol/business/columnists/article6982388.ece
