A New Jersey-based hedge fund worth $18.6 billion has opened an office in Miami Beach.
Appaloosa Management will operate from a small office on Washington Avenue in South Beach. But it won’t have any permanent employees, according to Reuters, which first reported the story. Instead, the office will be used by Appaloosa’s billionaire manager David Tepper and his staff when they’re in town. Its headquarters will remain in Short Hills, New Jersey.
Tepper was the ninth-highest-earning hedge fund manager in the U.S. last year, according to Forbes.
$18.6 billionValue of hedge fund Appaloosa
South Florida business and political leaders have been trying to attract wealthy hedge funds and private equity firms to South Florida, touting the area’s low taxes, good weather and growing cultural clout. Some prominent firms have already made the move including California-based hedge fund Universa Investments, Brazilian investment bank XP Securities, ESL Investments (a hedge fund managed by Sears chairman Edward Lampert) and Bruce Berkowitz’s Fairholme Capital Management.
Nitin Motwani, a local developer and board member of the Downtown Development Authority, confirmed Appaloosa’s move in an email.
“The Miami Downtown Development Authority's work to promote the city as a viable home for funds and their managers is gaining traction,” Motwani wrote, “and we're beginning to see a cluster take shape, with new entries into the market getting larger and larger."