That hedge fund managers tend to be based at the most exclusive addresses in the world is a well-known fact. They also often meet their clients or potential business partners in some of the most sophisticated locations. In the US, wealthy Greenwich, Connecticut, offers an exclusive, leafy setting. In the UK, London’s Mayfair area exquisitely combines work with leisure. And if a conclusion should be taken by Iceland’s recent financial market developments, the stylish 101 Hotel in Reykjavik is the country’s high power wine-and-dine address.
In January this year, as widely reported by the press, representatives of a group of international hedge funds were flown to Iceland by Bear Stearns, the US investment bank and leading prime broker that collapsed in the following two months. In Iceland’s close financial community, the hedge funds’ dinner meeting has taken on legendary status. Participants were said to have talked openly about short positions.