Wall Street South Braces for Hurricane Milton Test

Hedge funds and financial leaders who moved to Florida, drawn by sunshine and tax benefits, are considering the costs as Hurricane Milton tests their resolve. Despite risks of natural disasters, many managers remain committed to Florida, bolstering contingency plans while grappling with rising insurance costs.

Florida, long a magnet for hedge funds and financial professionals due to its sunny climate and favorable tax policies, is now facing a stern test as Hurricane Milton threatens the region. The hurricane's impact is prompting Wall Street players to reassess their commitment to the so-called 'Wall Street South.'

This exodus to Florida was further fueled by the pandemic, with billionaires like Carl Icahn relocating from New York to Miami in 2020, followed by Paul Singer's Elliott Investment Management and Ken Griffin's Citadel to West Palm Beach and Miami, respectively. Despite the looming threat of natural disasters, executives assert their continued support for Florida as a financial hub.

With insurance premiums rising and the risk of property damage increasing, the financial sector is adapting by implementing robust contingency plans. Firms like Citadel are prepared to safeguard employees and operations against potential evacuations, reflecting a strategic approach to balance benefits with the risks of residing in a hurricane-prone area.

(With inputs from agencies.)