More asset managers are leaving New York, Cathie Wood’s KRG to camp in Florida

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Posted on 09/10/2021


The tendency for asset managers to move from Wall Street to other locations has increased as communication technology flourished and the unattractive nature of heavily taxed, increased crime. expensive real estate for middle class and state regulated workers. With the onset of COVID-19 and the closure of operations and restaurants at the time, the need for asset managers to be in Manhattan has diminished. Anecdotally, asset distributors have, overall, taken fewer face-to-face meetings now compared to before COVID, according to rough estimates from SWFI research.

For example, from 2018 to 2019, AllianceBernstein LP moved its global headquarters to Nashville, Tennessee, from Midtown Manhattan. In 2020, private equity giant Blackstone Group moved some operations to Miami. Activist investor Paul Singer has moved the headquarters of his hedge fund firm Elliott Investment Management (Elliott Management Corporation) from Midtown Manhattan to West Palm Beach.

Cathie Wood’s ARK Investment Management LLC permanently closes its New York office and moves to St. Petersburg, Florida. The move will take effect on November 1, 2021. ARK also plans to build the ARK Innovation Center in Florida. The center would help advance its activities and facilitate collaboration with innovation communities.

“Ark is not a traditional Wall Street asset management company, and we look forward to breaking the mold further by moving to St. Petersburg, a city that invests in technology, science and innovation,” Cathie Wood has publicly stated.

Wood’s category of exchange-traded funds has grown in popularity in recent years. The flagship exchange-traded fund ARK Innovation jumped almost 150% in 2020.


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