Izzy Englander’s Millennium Management will open two more offices in Florida as its staff joins a growing southward migration.
The $50 billion hedge fund firm will have outposts in Miami and West Palm Beach, according to a person familiar with the matter. The move is mostly driven by its portfolio managers’ preference for the state, which doesn’t tax income, estates or capital gains. Meanwhile, top earners in New York City face among the highest state and local taxes in the U.S.
Millennium’s Miami office, which will be the firm’s second in the city, can accommodate 350 people and will open in the third quarter of next year, said the person, who asked not to be identified discussing non-public information. The West Palm Beach location will have capacity for 150 employees and will open in the second-quarter of 2022.
A spokesman for the New York-based firm declined to comment.
In addition to portfolio management teams relocating, technology staff such as developers and engineers — many of whom work closely with the trading pods –are expected to make the move. About 100 staff from hedge fund WorldQuant, which manages money for investors including Millennium, are expected to fill the Florida spots.
The Sunshine State has become a hot destination for hedge funds, particularly during the Covid-19 pandemic. In October, Bloomberg reported that Elliott Management was moving its headquarters to West Palm Beach and D1 Capital Partners recently opened a Miami office as founder Dan Sundheim moved nearby.
There are no plans for Englander or Millennium’s other senior management to relocate to Florida. In addition to its existing Miami office, Millennium has another outpost in Palm Harbor, on the Gulf Coast.