Will European policies ignite a hedge fund exodus?

FINAlternatives writes,

Many have predicted a hedge fund exodus should the controversial European rules—which once included draconian limits on trading and leverage, and now include equally unfriendly rules governing pay—be adopted. But few have gone as far as Michael Raffan, head of the financial services group at Freshfields Bruckhaus Deringer.

“No hedge funds will operate from within the EU,” Raffan told the Financial Times, noting that the exodus would be “rapid and decisive.”

“Hedge funds are much more mobile than banks,” he warned. “It’s much easier for three guys in Mayfair to pack their bags and move to Geneva.”

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