Hurricane Milton Tests Florida's Financial Hub Resilience

Florida's appeal to financial professionals is challenged by Hurricane Milton, threatening the state as firms grapple with contingency plans. Despite imminent storm dangers, major hedge fund managers remain committed to 'Wall Street South' despite insurance hikes and growing homeowner concerns amid rising hurricane costs.

Florida has long been a magnet for hedge funds and financial professionals, drawn to its sunny climate and low taxes. However, Hurricane Milton, a looming Category 3 storm, is putting that relationship to the test. The state has attracted financiers for years, especially during the pandemic, but now faces the challenge of weathering the storm.

For many fund managers, the trade-off between low taxes and a business-friendly environment outweighs the risks of increased insurance premiums following potential hurricane damage. High-profile firms like Citadel and Elliott Investment Management remain committed to operating in Florida, despite the challenges.

Some financial institutions have reinforced staff presence in the South to meet the demands of clients and employees who have relocated there. Concerns about future recruitment in hurricane-prone areas have arisen, as escalating insurance costs could deter potential hires.

(With inputs from agencies.)