GIBRALTAR, the low-tax British territory, has staged a coup by attracting the launch of a $500m (£340m) hedge fund run by ex-BNP Paribas event-driven specialist Andrew McGrath.
In a sign of the growing preference for low-tax jurisdictions among alternative investment managers, McGrath will domicile the Burren Global Arbitrage Fund in the former colony rather than the UK.
Last month, Gibraltar finance centre director James Tipping told City A.M. the territory wanted to replicate the growth of its insurance sector, which has multiplied fivefold to 100 companies over the past decade, with hedge funds. “There is an opportunity for asset management firms to consider Gibraltar because of the overall package,” he said, citing lifestyle as well as low tax as attractions.
The Burren fund is expected to trade securities based on opportunities thrown up by global events.