Billionaire activist investor Paul Singer is reportedly the latest Wall Street bigwig looking to relocate his hedge fund from New York City for Florida.
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Singer is taking his $41 billion firm, Elliott Management, to West Palm Beach, according to a report from Bloomberg, which cited people familiar with the matter.
While planting a new headquarters in West Palm Beach, Singer will also keep space in Midtown Manhattan and open offices in Greenwich so that all of his employees are not required to relocate, the publication said.
A spokesperson for Elliott Management declined FOX Business’ request to comment on the report.
Even prior to the pandemic, Palm Beach County was experiencing an uptick in financial firms relocating there.
Some notable names that have moved into the Palm Beach area include Paul Tudor Jones and Wexford Capital.
Billionaire investor Carl Icahn has also fled Manhattan, along with his business, for Sunny Isles Beach.
Florida has no statewide income tax, estate tax or inheritance tax. Meanwhile, New York's top income tax rate is more than 8%.
New York is also among a number of high-tax states contending with an exodus of residents to lower-tax states – a trend that has ramped up after state and local tax (SALT) deductions were capped at $10,000 under the Tax Cuts and Jobs Act.
Republican Florida Sen. Rick Scott told FOX Business on Thursday said he sends thank you notes to Democratic New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio “all the time” because they “send more people to Florida than anybody else.”
During the coronavirus pandemic, New York has seen an outflow of residents who have more remote work flexibility and are not confined to the expensive metro area.
Bloomberg reported that these trends played into Singer’s thought process, as he seeks ways to attract new talent in the future.
Like New York, San Francisco has also lost a significant number of residents, as technology companies have increasingly allowed workers the option to telework permanently.