Foreign hedge funds such as CQS are awaiting the Gillard government’s new investment management regime before deciding on whether to expand in Australia.
Paul Chadwick, managing director of CQS Investment Management (Australia) Ltd., says if Gillard’s investment management regime is in line with “other parts of the world” it may lead his firm to employ more people in its Sydney office.
CQS’s Australian office concentrates on sales. The London-based firm’s legal and tax advisers have cautioned it not to engage in investment management or trading activities in Australia.
The office of Bill Shorten, the Minister for Financial Services and Superannuation, says “we’ll be announcing something by the end of the year” on new investment management regulations.
“Even if the regime is favourable we may not employ more people,” says Chadwick. “But the current regime is an impediment and that’s why we only have a marketing license.”
CQS manages about US$11 billion. It employs about 230 people and has trading offices in London, New York and Hong Kong.
The 12-year old hedge fund was founded by Michael Hintze, a Harvard Business School educated supporter of the U.K. Conservative Party.
In Australia CQS recently doubled its workforce by hiring Louise Walker. She had worked at Tria Investment Partners and Macquarie Group.