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on the much-threatened exodus of hedge funds – and how hard London has really been hit



ome men read Playboy. I rea annual rePortS. Some men read Playboy. I read annual ePortS. Some men read Pla boy. I read annual rePortS Some men read Plwayboy. I read annualSome men read Playboy. Some men I read an ortS. read Playboy. Some m d Playboy. I read I read ane rePortS annual Some men r d Playboy. rePortS. I read nual rePort rea layboy. I read annual rePo rtS. Some men read Playboy read annual rePortS. Som en read Plwayboy. I read an ualSome men read Playboy read annual rePortS. Som men read Playboy. I read an warren buffett – From ‘Warren Buffett and the Interpretation of Financial Statements’

Tiny competition: Find the mini UK (above) hiding somewhere in the magazine. Email us with the location to competition@ Terms & conditions apply.

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Editor’s Letter


Square Up Media 4 Tun Yard Peardon Street London SW8 3HT +44 (0)20 7819 9999 EDITOR-IN-CHIEF

Martin Deeson EDITOR


Matt Lewis-Hasteley INDUSTRY EDITOR




Katerina Varnavides CONTRIBUTORS

Mike Baghdady, Gareth Groves, James Gurney, Tracey Llewellyn, William Hutchings, Lee Mannion, John Mauldin, Euan Rellie, Robin Swithinbank

at on the back time, folks. A poll of Deutsche Bank investors says you’ll be in the money this year. Hedge fund assets are tipped to grow more than 25% to $2.5 trillion. Almost one third of the survey’s 528 respondents predicted hedge funds would attract between $200bn-$300bn in new cash this year (compare this to inflows of a ‘mere’ $55bn in 2010). And, of course, we would never doubt your ability to pull off such a haul. But what we really want to know is where you’re going to be making this moolah? I mean you can’t go to Switzerland, can you? If you actually work there – not just ‘Lewis Hamilton’ there – then the tax breaks aren’t worth the upheaval. Plus, it’s about as exciting as cornflakes. (Own brand, no sugar on top.) So how about Hong Kong? Er, how’s your Cantonese these days? San Francisco? Too far away. Dallas, then? You are mental. Got it – New York, top hedge hub, surely? OK – there’s no questioning the appeal; just read the expert guide on p30. But what this fails to tell you is that after a while the shine wears off and the annoying accent wears you down. So that just leaves... London. Welcome home!


Michael Berrett, Christian Morrow ACCOUNTS

Steve Cole, Laura Otabor CEO & FOUNDER



Please recycle your copy of HEDGE when you have finished reading it

Mark Hedley – Editor

Contributors WILLIAM HUTCHINGS Now the asset management editor of Financial News, William Hutchings became a journalist 12 years ago, focusing on asset management, institutional pensions, private equity and hedge funds. He was runner up to Robert Peston in the 2009 business journalist of the year awards.

EUAN RELLIE In 1996, Euan Rellie co-founded Business Development Asia LLC (BDA), which was awarded Investment Banking Firm of the Year by the M&A Advisor in 2010. Euan has lived in Singapore, New York and London and worked across China, Taiwan, Korea, Japan, India and the Middle East.

ROBIN SWITHINBANK Robin began writing about watches by mistake. Within weeks of landing a job at a London publisher as chief tea boy ten years ago, he was shipped off to Basel and dunked into the horological deep-end. Robin now edits watch magazine Calibre and contributes watch-related musings across the UK press.

LEE MANNION After a decade working on photo desks for magazines and papers, Lee Mannion finally got the incentive he needed to become a writer when redundancy came calling. In this issue, Lee travels to Big Bend territory in Texas. Despite the photo, he doesn’t always wear cowboy hats, though.

© Square Up Media Limited 2011. All rights reserved. No part of this magazine may be reproduced without the written permission of the publisher. All information contained in this magazine is, as far as we are aware, correct at the time of going to press. Square Up Media cannot accept responsibility for errors or inaccuracies in such information. If you submit unsolicited material to us, you automatically grant Square Up Media a licence to publish your submission in whole or in part in all editions of the magazine. All material is sent at your own risk and although every care is taken, neither Square Up Media nor its employees, agents or subcontractors shall be held liable resulting for loss or damage. Square Up Media endeavours to respect the intellectual property of the owners of copyrighted material reproduced herein. If you identify yourself as the copyright holder of material we have wrongly attributed, please contact the office.



Boodles Blossom | T: +44 (0)20 7437 5050 |

52 ISSUE.17

22 28 40






Bestselling author John Mauldin on entering the second act of the crisis



Mark Driver – from hedge funds to viticulture via ten bottles of wine



Or, rather, ‘My Marylebone’ – Orrery is worth the journey, says Eugene Costello



Savile Row was a different place in 1907 – there were electric Mercedes then...







William Hutchings from Financial News on the shifting landscape of the industry and what’s happened to the muchthreatened migration from London

Jon Hawkins meets the ultimate bookworm – Toby Blackwell of Blackwell’s – and finds out why he so fervently believes we’d be better off out of Europe





We’ve asked a trio of New York insiders – plus a few luxury luminaries – to give their tips on the city that never sleeps

When it comes to expanding a company with 200 years of tradition, John Durnin says slow and steady wins the race




David LaChapelle’s photos often depict celebrities in compromising positions. But this time it’s money in the frame


Award-winning trader Mike Baghdady says that positive results can still emerge out of Egypt’s political strife




11% ISSUE.17 San Francisco

3% Westport





New York Boston





60 21%

68 56





Sparkle and style inspired by New York’s iconic monuments and epic skyline

“ Watch the



When it comes to wine ‘natural’ is the new ‘organic’ says Gareth Groves



RSPB’s fight for the majestic albatross




He took some convincing, but even staunch Kernow Tim Slee had to admit that the Cayman Islands beats Cornwall


Jermyn Street may not be as famous as its neighbour Savile Row – but there’s arguably more to it, says Martin Deeson



Robin Swithinbank on Graff success James Gurney on heavyweight Panerai Tracey Llewellyn on Montblanc chronos


downside; the upside will take care of itself



Americans are famed for doing things on a large scale: Lee Mannion says it doesn’t come much bigger than Big Bend territory


Wild Honey takes its design from funds and its culinary inspiration from the gods





From Geneva to Cyprus via Catalunya...

John Paulson, Paulson & Co


A QU EST FOR DEPTH. Designed and developed for deep-sea exploration, the Royal Oak Offshore Diver is equipped with a dedicated diving scale on an inner rotating dial ring and meets the demanding criteria of the Swiss watch industry diver’s watch norms. Water-resistant to 300 metres. Stainless steel case. Proprietary selfwinding calibre 3120, all parts finely decorated; oscillating weight engraved with the AP monogram as well as the Audemars and Piguet family crests.

A u d e m A r s P i g u e t u K L t d , Te l : + 4 4 ( 0 ) 2 0 7 6 5 9 7 3 0 0 - w w w. a u d e m a r s p i g u e t . c o m



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Move into the Endgame Best-selling author JOHN MAULDIN looks back over the past 60 years where Act I saw countries and homeowners borrowing to the hilt. Now Act II is about footing the bill… “IN RETROSPECT, the temporary breakdown of the financial system seems like a bad dream. There are people in the financial institutions that survived who would like nothing better than to forget it and carry on with business as usual. But the collapse of the financial system as we know it is real, and the crisis is far from over. Indeed, we have just entered Act II of the drama, when financial markets started losing confidence in the credibility of sovereign debt.” – George Soros, 10 June, 2010 The bankruptcy of Lehman Brothers in the fall of 2008 drew the curtain on a very long 60-year Act I in the debt supercycle. You could feel in the air the end of a golden period, when everincreasing quantities of debt could lead to ever more consumption and ‘wealth’. As stock markets crashed globally and the lines of unemployed lengthened, this end was something we could observe in real time. And let’s be very clear. That debt did fuel growth – throughout the developed world. In an Insight newsletter, Gary Shilling noted: “According to the Federal Reserve, Americans extracted

$719bn in cash from their houses in 2005 after a $633bn withdrawal in 2004 and $439bn in 2003. Back in the mid1990s, it was less than $200bn per year. This was easily accomplished with the help of accommodative lenders through refinancings and home equity loans.” That $719bn in one year was about five percent of GDP – which went into all sorts of consumer spending. Clearly, the mortgage equity withdrawal was a large part of the growth after the 2001 recession. Without such ‘stimulus’ the US economy would not have grown nearly as much. Things always appear more certain and clear when we look backward. Usually big changes happen imperceptibly, and it is only in retrospect that we recognise them. For example, you can look back at the early 1980s and see the end of stagflation and the beginning of a new bull market in stock, but at the time it didn’t feel like it. In fact, many people even thought we might enter a third recession when Continental Illinois Bank went bankrupt in 1984. Or you can look back at when China joined the World Trade Organisation and see it as a massive game-changer in global trade, but at

the time it drew little attention. Do you remember where you were when China joined the WTO on 11 December, 2001? Almost no one remembers it, but it has changed our lives. The end of the debt supercycle is different. We all know we have seen the end of an era, and we have court-side seats to watch the endgame unfold. We have seen the end of Act I: the debt supercycle. Now we will get to see how Act II, the endgame, plays out. One of the principal Chinese curses heaped upon an enemy is “May you live in an interesting age.” While the outcome of the endgame is uncertain, one thing we can count on is that we will indeed live in interesting times. We face a fundamentally different economic environment than we have lived in for the last 60 years. There is a massive reset of the global economy, some of it for the good and some of which will make us very uncomfortable, depending on the country in which you reside. But as individuals and governments come to the end of their ability to borrow massively, growth must come from different sources. H ‘Endgame’ by John Mauldin & Jonathan Tepper is out now (Wiley, £18.99)



Welcome to a new chapter in Bentley history. The new Continental GT – a remarkable fusion of breathtaking performance, sensuous luxury and modern technology. This stunningly sculpted coupe’s sharp features are indicative of Bentley’s DNA. It harnesses an incredibly powerful 567bhp (575PS, 423kW) FlexFuel W12 engine sporting innovative capabilities for everyday driving. This is matched with an exquisitely handcrafted, contemporary

interior to ensure you are transported by all-wheel drive in superior comfort and elegance. Supreme motoring that is unmistakably Bentley. Welcome to the new Continental GT. To take a test drive* find your nearest Bentley dealer at Fuel economy figures for the Continental GT in mpg (l/100km): Urban 11.1 (25.4); Extra Urban 24.9 (11.4); Combined 17.1 (16.5). CO2 Emissions (g/km): 384.

For more information call 01270 535 032 or visit The name ‘Bentley’ and the ‘B’ in wings device are registered trademarks. © 2011 Bentley Motors Limited. Model shown: Bentley Continental GT, mrrp £135,760. Price correct at time of going to press and includes VAT at 20%. Price excludes road fund licence, registration and delivery charges. *Subject to availability.



shorts Edited by Eugene Costello


I recently had my 40th. When the full list of those wishing to attend came back, I found myself having to book a house remote enough to be suitable for, er, ‘extracurricular’ activities (neighbours not too close), with a room big enough for a DJ and dancing. Reader, I did it. But the stress of it still lives with me four years – er, I mean, weeks – later. So quite what hedge fund tycoon and philanthropist Lord Fink [above, left] and ‘luxury lifestyle expert’ (that’s what I want to be when I grow up) David Johnstone are feeling now is hard to imagine. They have set themselves the invidious task of staging 80 parties simultaneously at 80 venues around the world. Hedgies, stand up, hand on heart, and hum a little of Elgar’s Nimrod – the whole shebang kicks off with a launch at London’s Natural History Museum on 8 September. Anyone who has bought tickets for any of the 80 global parties on the 15th and 16th will automatically receive invites for the launch. Beneficiaries include Arpad Busson’s ARK charity, the Raisa Gorbachev Foundation, eco-organisation Blue Marine Foundation and the Tusk Trust. – EC

Savile Row has long had a certain – shall we say, snooty – attitude whereby the mountains will not come to Mahomet; Mahomet must go to the mountains. That is, if you want a bespoke suit, it’s at least three visits to a rather fusty premise on the Row. Only upstarts and charlatans would be so vulgar as to actually go to where their clients are and make their lives a little easier for the £3k of which they’re lightening them. Fortunately, Kilgour is far more enlightened, despite being one of the most distinguished names on the Row. As well as annually despatching a team of cutters to the colonies – aka the US – in May, they are also offering their services exclusively to HEDGE readers. That’s right – they’ll come to your office to measure you up. But you need to be quick – this offer only runs until 31 May. Quote ‘Hedge’ when you call. 0800 953 5841;


1899 Steinway, £75,000

A glorious ornately decorated Steiway grand piano restored by renowned expert David Winston. 01580 291 393;

“Get out of the dollar, teach your children Chinese and buy commodities.” Jim Rogers, commodities bull and co-founder of the Quantum Fund, sold out of NYC and went east




hedge magaZiNe ISSUE 17


shorts Portrait of a hedgie this moNth Mark driver – from hedge funds to viticulture via ten bottles of wine



€963 $2m

▲ The cost of the Victoria’s Secret Bombshell Fantasy bra made from 142 carats, including 60 carats of diamonds, sapphires and topazes


Mark Driver now owns the largest vineyard in the UK, Rathfinny (

◀ The net asset value – in billions – of funds domiciled in Ireland. A new high for the country, the industry is bucking the downward trend of their economy

50,000 ▲ The number of people who marched through the streets of Dublin to protest against Ireland’s austerity budget in November last year

◀ The number of hedge funds domiciled in the UK. When asked what would happen if a fund was domiciled here, an associate at the FSA said: “I don’t know.”

9,000 ▲ Approximate number of active hedge funds and funds of funds in the world

Nu mb3 rs

So here I am, 46 years of age and out of work. Well, to be more precise, ‘retired’. I’d spent 25 years working for various investment banks in both London and Hong Kong. I never made it to New York – something I always regretted – but then again I wouldn’t have met up with my business partner John Horseman if I’d gone across the pond. Thankfully, John saved me in 2000 when another investment bank I was working for, Donaldson, Lufkin and Jenrette (DLJ) – or ‘Driver Loses Job’, as my children like to refer to it – merged, or more accurately sold-out to CSFB. I called a friend of mine at Credit-Suisse and told him: “It looks like we’ll be working together again.” His response was as an emphatic ‘no’ – it was not likely that we would both survive the ‘merger’. He was right. I didn’t survive. However, for all my hard work over two years I was given a nice green tie by my former boss and, with that, kicked out. However, John asked me to come and help him run a hedge fund, which is where I have been working for the last ten years until the end of last year when we decided

to call it a day and pass on the day-to-day management to someone a little younger. I must admit that at 45 I felt a little young to retire; you can only play so much golf, and I’m not good at golf. Given that most of my friends still work, you get bored and lonely pretty quickly. So there I was scanning the UCAS website for my daughter, trying to find a course for her, when I got to down to V – Viticulture. I couldn’t believe that you could actually study wine production in the UK, but you

PhoTogrAPhS by David rose (

can – at Plumpton College, part of Brighton University. So I spent the next two months investigating the English Wine scene and it just got better and better. Did you know that several English wine producers have been given international awards for their sparkling wine in recent years? I didn’t believe it so I bought a large selection of bottles and tried them in a blind tasting with a whole bunch of our close friends at a dinner party. Ten bottles of sparkling wine later and the conclusion was that no one preferred the French Champagne over the English sparkling – in fact, even my French friend preferred a Sussex sparkling to Laurent-Perrier and although Pol Roger was highly thought of, the overwhelming view was that English sparkling wine was really rather good. To be honest anything can taste good after the tenth glass – however, everyone was pleasantly surprised by the quality English sparkling wine. So, I signed up for the course at Plumpton College and started looking for some land to plant out grapes in the UK. 12 months on I’m sitting in Bordeaux, in the cheapest, crapiest hotel I’ve stayed in since I was last a student, about to attend the Vinitech exhibition with the college. And it’s great. Oh, and I’ve bought some land. H






# 1 0




And beautifully paired by our genius sommelier Shana with a muscat de rivesaltes, a fortified white wine from Rousillon that was like a sweet cognac, delivering a kick – but silkily, like Uma Thurman in Kill Bill. Get yourself down there. Feel free to tell them I sent you. But keep off my armchair on the roof terrace, OK? – Eugene Costello

H E D G E . S A L U T E $


This month, HEDGE salutes Jonathan Ruffer. The founder of Ruffer Investment Company has donated £15m of his own hard-earned cash to save for the nation a series of paintings he has never even seen. He bought 13 masterpieces by 17th-century Spanish artist Francisco de Zurbarán from the Church of England and immediately gave them back to the Church as a gift.

Subscribe If you’re involved in the hedge fund industry and work in London, you are entitled to a FREE subscription to HEDGE magazine. TO APPLY, EMAIL



Normally, journalists are pleased when told they only have to write 300 words. Knock it off over a coffee, job done, down the pub. For once it seems an unreasonable handicap. That’s because I intend to wax lyrical about the superb Orrery, a fine jewel in the crown of the D&D empire (the artist formerly known as The Conran Group). It’s a long, glass-roofed, former stable block above the Conran store at the north end of Marylebone High St. (There’s a fabulous roof terrace that is perfect for sipping chablis on a spring evening, but I’m not telling you about that. We like to keep the riff-raff out.) Yes, yes – I know this isn’t Mayfair, but it’s worth the schlep, I promise. So I’ll just say chef Igor Tymchyshyn is a hero. From hand-dived Orkney scallops as fat as me on a bed of leek and potato with a divine butternut squash and truffle velouté to the best tournedos Rossini I have ever had – a beautiful hunk of fillet in a Périgord sauce, a madeira and truffle jus, served with roast shallots and pan-fried foie gras – as rich as a hedgie, but far tastier – the food is exquisite and satiating in equal measure. A milk chocolate parfait with raspberry compote was, er, parfait, Rodney. And afterwards the cheese trolley sailed through the room like a majestic Cunard liner, a thing of stately elegance and weightiness. And what a selection. Brillat-Saverin, comté, cantal, a melted lake of camembert….

hedge Magazine Issue 17


shorts O n T h e C O f f e e Ta b l e

Mercedes in Mayfair, 1907

In Edwardian times (think Upstairs, Downstairs, etc) the wealthy still lived centrally – Whitehall, Mayfair and Westminster. (Of course, some still do, though with nothing like the density of the pre-war era.) What this meant was that, as tailors and other suppliers moved into these areas to service the gentry, it became very common for merchants to take out the ground floor to use as their showroom.



This picture of Savile Row in 1907 serves as a great example of the practice. Is it our imagination or does the dapper resident of No. 12 seem sniffily disdainful to have – eugh – trade next door? (Let’s hope he shuffled off this mortal coil long before he saw what they did to Oxford St... or, God forbid, Leicester Square.) The car in the street is a petrol-engined touring car; in the showroom, you can see the electric Brougham, the G-Wiz of its day – but in a good way. The old debate about

petrol versus electric was taking place in those days, with adherents of the Brougham relishing it as a town car, convenient for parking, silent and very easy to drive. It’s a beautiful encapsulation of a bygone era, and the book it’s from has hundreds more like it. Sadly, the only Merc you’ll see on the Row now is a double-parked S-class with a chauffeur waiting for his boss to emerge from a fitting at Huntsman… H ‘The Photography of Bernard Lemere & Co’, by Nicholas Cooper (English Heritage, £25)






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shorts Hedge HeArtlAnd All the news... from Mayfair ThirsT case scenario

Some partnerships just don’t work. Guy and Madonna. AOL and Time Warner. Whisky and tonic. Fortunately, Moët Hennessy and the May Fair Hotel in Stratton St’s new venture, 150, looks set to be a lifelong love. Opt for the Dom Pérignon Vintage Rosé 1998 for 12 guests and the hotel’s chef/patron Silvena Rowe will organise canapes for your party – and, oh, what canapes! Seared diver-caught scallops and Sevruga caviar remoulade; crispy-spiced jumbo prawns with avocado and tahini; West Mersea native oysters with caviar and Szechuan button and pomegranate-glazed foie gras. My doctor has banned me from coming to review it – drop me a line and let me know how it goes for you. Adding the sparkle and fizz is four magnums of the above vintage; the package costs £4,400, though visit the hotel website to peruse differently priced packages and options. There’s something for everyone



here – well, everyone who works for a hedge fund, to be literate – and the venue will dazzle and impress the most jaded of your clients upon whom you choose to shower largesse. And the very observant will have spotted the purple label on the Dom Pérignon – this is part of its range paying hommage to the iconic works of Andy Warhol... – EC 020 7629 7777; a Town called alice

Or so London might be termed over the next few weeks. Moving seamlessly from Andy Warhol to Salvador Dalí (that’s how we roll here at HEDGE Towers), I’m here to tell you that Dalí’s bronze sculpture Alice in Wonderland will be exhibited in London for the first time. Modern Masters Gallery and The Dalí Universe have teamed up to bring this wonderful piece of work to London, along with other iconic sculptures that include Horse Saddled With Time and Lady Godiva With Butterflies. Other works from this, the last phase of Dalí’s extraordinarily prolific life, include his famous Tarot cards. – EC Until 30 June. Admission free. Moor House, 120 London Wall, EC2; daily except Sun

a thing of wonder: detail from Alice in Wonderland, dalí’s 1977 five-metre sculpture has travelled the world and has now arrived in London

p28 . EXODUS . The great migration of hedgies? p40 . MONEY TALKS . David LaChapelle’s new show


“The city is an endless sequence of passion and action that to me speaks to the inherent optimism of Manhattan, and it is truly inspiring” Frédéric de Narp, President & CEO, Harry Winston My Manhattan . p32


The Great Migration? on the shifting landscape of the hedge fund industry – from the investor base to the funds’ principal offices WILLIAM HUTCHINGS




A TOTAL BLOOD transfusion and a complete change of scene. It sounds like a Victorian doctor’s prescription for an overwrought, wealthy patient, but in fact it’s a fair approximation of two developments that have been dominating the collective mind of the UK hedge fund industry over the last three years. New clients have replaced the old, and many hedge fund managers have been thinking of moving to Switzerland or even to the Far East. The change in clients has been radical. Damien Loveday, global head of hedge fund research at Towers Watson, one of the world’s largest investment consultants advising pension schemes and other institutional investors, says: “One hedge fund manager we know had something like $16bn of assets under management three years ago, and $16.5bn a year ago. On the face of it that’s not a particularly large change, but actually, over the course of those two years, it saw outflows of $16bn and inflows of $16.5bn. It was a complete change of investors. “We’ve seen the same at three other funds, and there’s been a huge change in the hedge fund industry’s investor base.” The high net worth individuals that formed the bedrock of the hedge fund industry’s clientele from the late 1960s to the late 2000s have turned their backs on the industry. The managers they thought would protect their capital in every kind of market simply failed to do so. Sure, hedge funds as a whole lost only half as much as equity markets in 2008 – in dollar terms, the average hedge fund lost 19% that year, according to data provider Hedge Fund Research, while the MSCI World Index fell 40% – and hedge fund managers never guaranteed they wouldn’t make a loss; but nevertheless their wealthy clients were shocked and appalled to see their hedge fund investments lose double digit percentage points. Two years ago, Michael Sonnenfeldt, founder of the wealthy investor US networking group Tiger 21, said his members felt they had been “played for a fool” by hedge fund managers, had cut their portfolio weightings in hedge funds from 11% to 3%, and were unlikely to return for at least a generation. A decade or so ago, high net worth individuals accounted for most investments

“ The individuals that

formed the bedrock have turned their backs on the industry. The managers they thought would protect their capital simply failed to do so ”

in hedge funds, according to investment consultants. An Alternative Investment Survey published by Deutsche Bank this year showed high net worth individuals now account for only 6% of all direct investments in hedge funds, with another 9% channelled through private banks. With perhaps another 10% channelled through funds of funds, high net worth individuals now account for only about a quarter of all investments in hedge funds. Funds of hedge funds – an intermediary, typically between relatively new or small investors on the one hand and hedge funds on the other – have also been cut down as a channel for investments into hedge funds. Their investors were unhappy about their returns and the fact that they couldn’t get their money out when they wanted it, while the hedge funds to whom the funds of funds had allocated capital found them too quick to ask for their money back. The authors of the Deutsche Bank survey summarised it thus: “The liquidity crisis of 2008, the Madoff fraud and increasing sophistication of the endinvestor base, have resulted in large outflows, particularly in Europe, and raised questions about the validity of the fund of hedge funds business model.” Institutional investors – such as pension schemes, charitable endowments and insurance companies – have taken the place vacated by high net worth individuals and funds of hedge funds. About a third of institutional investors surveyed by Deutsche Bank said they increased their allocations to hedge funds last year, and a fifth said they planned to increase their allocations in 2011. One UK commodities hedge fund manager, who requested anonymity, said: “UK pension schemes are investing in us directly now, rather than through funds ▶




▶ of

hedge funds. Some of them thought that they should have an exposure to commodities and were investing passively, and they have decided they would rather have an active manager.” This extensive change in client base is having two significant impacts on hedge fund managers: First, institutional investors drive a hard bargain on fees. High net worth individuals didn’t seem to mind paying two and 20 – an annual management fee of 2% of assets managed, plus an annual performance fee of 20% of any gains. Pension schemes look at it rather differently. They ask, ‘What return did you give me that I couldn’t have got if I’d invested in the same markets as you over a decent period of time?’ Then they say, ‘if you did outperform, we will give you 25% to 50% of whatever the outperformance was’. The resulting fee structure typically includes a time frame for measuring returns; usually, this is three years but sometimes can be five; a hurdle rate, typically a benchmark that blends the markets where the hedge fund manager invests; the use of high-water marks, which means the manager cannot charge its clients performance fees just for recovering money it had previously lost them; and clawback rights, where some of the fees previously paid may have to be repaid. For all but the best-performing managers – the top 1% – the new fees are a lot less lucrative than the old two and 20. Second, institutional investors are far more concerned about things going wrong.

A Numbers Game The Hedge Spread According to IFSL Research’s Hedge Funds 2010 report, the US is by far the leading location for management of hedge fund assets with over two-thirds of the total. Its current share, however, is well below its 80% recorded in 2000. Meanwhile, Europe has doubled its combined share during the last decade, with London boasting the largest stake at 20% of the total. Of course, none are actually domiciled in the UK. Although exact numbers are difficult to pin down, the Cayman Islands has the lion’s share with an estimated 75%, with Delaware, Bermuda and Dublin taking big slices of what’s left.



“ Pension schemes look

at it differently. They ask, ‘What return did you give me that I couldn’t have got if I’d invested in the same markets as you over a decent period of time?’ ”

The members of pension schemes are ordinary working people who rely almost entirely on the scheme for their income in retirement. If the scheme invests in a hedge fund that blows up or cannot pay it back when it needs the money, it may struggle to make sure its pensioners receive their monthly cheque. And if the hedge fund gets into trouble with the regulators or the law, the pensioners will be furious. As a result, hedge fund managers aiming to attract institutional money have beefed up their risk management and compliance teams heavily. Brevan Howard, one of Europe’s largest hedge fund managers, is said to have dedicated a floor of one of its offices to this function. This development means higher costs for hedge fund managers. Of course, they’d rather not pay it; but it is a cost that is increasingly difficult for them to avoid, because as well as a shift in the nature of the hedge fund industry’s investors, regulations are changing. The European Union’s Alternative Investment Fund Managers directive, enacted last year, will bring in a raft of reporting and compliance requirements for hedge fund managers. The introduction of this directive has helped fuel a second major development in the hedge fund industry: serious thoughts of relocation. While hedge funds themselves are mostly domiciled in tax havens such as the Cayman Islands, the managers who run them mostly live, work and pay taxes in or around the big financial centres such as New York and London – where they are also regulated. The directive, and an increase in the top rate of UK income tax from 40% to 50%, has led to much talk of UK hedge fund managers quitting the country for domiciles outside the EU. Switzerland came to mind


first as a potential new location, and hedge fund managers are now said to be thinking about the Far East, particularly Hong Kong and Singapore. There has, however, been much more talk than action. Reto Barbarits, a director of Swiss & Global Asset Management, a Zurich asset manager that runs a hedge fund, said: “It is difficult to get reliable data about the topic, but we haven’t seen a rush of UK hedge fund managers into Switzerland. Some have been reported in the press as moving, but it is more that they are thinking about moving, mainly for tax reasons, than actually moving.” Some of the bigger UK hedge fund managers have opened offices in Switzerland. These include Brevan Howard, whose founder Alan Howard moved to Geneva last year – his wife is Swiss – and has just been joined by his co-chief executive, Nagi Kawkabani; Moore Capital, which has opened an office in Zurich with Jean-Philippe Blochet and Kornelius Klobucar; and BlueCrest Capital has seen dozens of staff move from London to its Geneva office. But each of these firms retains its head office in the UK. Examples of hedge fund management firms that have moved lock, stock and barrel to the cantons are few and far between: Amplitude Capital, a small firm that makes extensive use of computers, is the only example most people can name. Daniel Müller, founder, managing partner and chief investment officer of Entrepreneur Partners, a Zurich financial adviser and asset management provider for high net worth individuals that advises on hedge funds, said: “There’s a lot of talk, but I’m not aware of any hedge funds that have moved all their operations and people here.”

“ Examples of hedge fund management firms that have moved lock, stock and barrel to the cantons are few and far between: Amplitude Capital is the only one most can name ”

Issues of lifestyle aside, part of the reluctance to move stems from the fact that Swiss tax rates are not cheap, even compared with the UK. Another part of the resistance is the realisation that relocating outside the EU will not allow a hedge fund manager to escape from compliance with the EU’s regulations – not if it wants to continue having clients in the EU. The Alternative Investment Fund Managers directive will, in effect, make it difficult for EU investors, even the largest and most sophisticated ones, to place their money with any hedge fund manager that did not comply with most of the directive’s rules. Relocating to Hong Kong or Singapore wouldn’t change this. And such a move would risk putting a hedge fund manager out of touch with his investor base. Richard Watkins, chief executive of hedge funds placement agent Liability Solutions – who himself moved from London to Geneva a few years ago – said: “People who invest in hedge funds have significantly cut back on their travel budgets, because they’re just not making the returns they used to. And whereas it used to take only two to six months to make a decision to invest in a hedge fund, now they require six or seven meetings and it may take a year. So there’s been a complete collapse in western investors’ interest in Asia-based hedge funds.” Investors said they saw little evidence that an Asian presence helped investment returns. Moreover, Asia has no financial hub to match London or New York, and many hedge fund managers – though there are significant exceptions – seem to like rubbing shoulders with their rivals. Despite a five-fold increase in Hong Kong funds over the last five years, stimulated by their access to China, and Singapore hedge fund startups are on the rise after its central bank watered down licensing requirements, these hedge fund communities are still tiny. Moreover, Watkins said: “Asian investors aren’t interested in hedge funds, they’re more interested in doing it themselves or buying property. So if you do come across someone who is moving to Asia to run a hedge fund, you can be sure they won’t be doing it to raise funds.” H Are you thinking about upping sticks? Let us know where and why?




We asked a panel of New York insiders to give their guide to the best places to eat, sleep and spend their cash. We figured there’s got to be a few reasons why half the world’s hedge funds are holed-up here

My Manhattan 32



TAILORS MILLeR’S OATh, 10 GReenwIch ST, AT SpRInG ST; +1 212 219 9965

Open by appointment only. Kirk Miller is married to a Brit and has adopted just a hint of his wife’s dry humour and refinement. He opened his own store 18 months ago, which he runs with the determined focus of a sole trader. He loves to pontificate gently on what he thinks might be the perfect flannel, or the most elegant collar. He’s patient and attentive, and he charges $3,500+ for a suit. He uses fabrics mostly from small family-run mills. His suits are judiciously understated but he loves to add odd pockets, and rare buttons. Kirk’s style is Sean Connery circa 1958. The girls love him – and the clothes Kirk makes for their boyfriends.

By Euan RElliE – co-founder of awardwinning investment bank Business Development Asia

ISAIA, 730 FIFTh Ave, SuITe 1004 AT 57Th ST. +1 212 245 3733

This family from Naples runs an impeccably elegant store in an elegant Fifth Avenue skyscraper. It reminds me of a discreet playboys’ lair. Think Hermès and Etro with

tumblers; and while you’re in a relaxed mood, he’ll persuade you to throw out every suit you already own; he’ll then dress you like a postwar pilot or undertaker and, trust me, you will never look sharper. hOnG KOnG TAILOR JAcK, 136 wAveRLy pLAce; +1 212 675 0818

If you have an article of clothing that you love but that needs to be improved with a nip and a tuck or a new collar, Jack and his long-suffering wife will hook you up. They’ll charge you $100 or $150 to remake a suit completely. They can turn a sackcloth into the finest luxury piece. MOnOGRAMS MARy MOnOGRAMS, 150 w 30Th ST; +1 212 268 8504.

I take my shirts, mackintoshes, luggage and, when I’m feeling particularly pretentious, my pyjamas, to Mary. She monograms them all for me in bright red block letters. Kind of like Cash’s name tapes for the grown-up financier. Give her $50 for the lot. Bespoke doesn’t come cheaper than that.

L u x u ry

I live outside of the city, so driving into New York each morning I am always fascinated to see how quickly it evolves, even over night. It is a city of constant activity – movement, building, energy and ideas. An endless sequence of passion and action, that to me speaks to the inherent optimism of Manhattan, and it is truly inspiring. I think somewhere along the way there grew an unfortunate perception that New York can be too tough or jaded. But this couldn’t be farther from what I have personally come to understand and love about this remarkable city. Out of its unbreakable spirit and pure perseverance has emerged a sense of generosity, giving and hope, in New York, unlike any other in the world. FrédérIc de NArp, president & ceO, Harry Winston

extra meticulous refinement and sex appeal. They sell clothes through department stores too but, if you’re a serious customer, they’ll make sure a master tailor is present, often flown in from the workshop in southern Italy, to meet you and look after you properly. Last time I dropped in, they described in detail a new dark chocolate dinner jacket they’ve made, using wool from sheep bred to be dark-chocolate-brown – so the wool need not be dyed. By the way: learn how to pronounce it: “Iss-A-uh”. How do you say ‘dapper’ in Italian? ThOM BROwne, 100 hudSOn STReeT; +1 212 633 1197

Thom is famous for making skinny suits that show your ankles, but he loves to take extensive and extravagant commissions from high-roller financiers. He’ll pour you a couple of glasses of Bollinger, always in


Steven Taffel will make you whatever shoes you want. Only go when the market’s up: it’s bloody expensive. If you’re down, you can pick up a pair of Church’s off the shelf. hAIRcuT FReeMAnS SpORTInG cLuB BARBeR, 8 RIvInGTOn STReeT; +1 212 673 3209

After having my hair cut here, I refuse ever to go to another barber unless it has antlers on the wall. They’ll shave you properly and (if you feel like it) feed you and clothe you in their neighbouring establishments. JeAnS eARneST Sewn, 821 wAShInGTOn ST, new yORK; +1 212 242 3414

Everyone should own some tailor-made ▶





▶ jeans in Japanese or Turkish denim, right? Lots of cool hardware options. Less than $1,000 a pair.






ST; +1 212 388 9191; RECIPROCALNYC.COM

+1 212 838 3775; MRSSTRONG.COM

Sometimes luxury requires you to be hip as well. At Reciprocal you can commission a skateboard constructed, assembled and decorated precisely to your instructions by a local designer. The cognoscenti choose boards made of maple from Canada.

Bespoke embroidered velvet or suede slippers of a preppier and more rakish style than typically found on Jermyn St.

The city’s best stationer is discreet, and recently emerged from bankruptcy. She engraves cotton card stock by hand with steel dies and a brass plate. Ask for thick note card, as florid or as classic as you want, and for bespoke tissue-lined envelopes. Expect to pay $1,500 for a set of 100.



+1 212-625-2557



AT 56TH ST; +1 212 750 9797;



+1 212 941 7400;

They will make you a rawhide leather wardrobe trunk. Good for safaris and ocean liners. Normally comes with a large interior hanging compartment and three dropdown packing drawers. I like the polished nickel locks and fittings – very Titanic, but in a good way. It’ll set you back about $5,000 a trunk.


Rudy Pensa will sell you a vintage Collings for $100,000. Or a basic Fender or Gibson for $2,500. You just might have to fight with John Taylor or Mick Jagger to secure your favourite.



Ignore the Romeo y Julietas and Montecristos on display and insist on the cigars that they roll themselves. Better yet, arrange for one of their cigar rollers to come and make some for you at your own home. If you pop in to this tiny shop in Little Italy, pick up a Colibri lighter, a teak humidor, and an oversized marble ashtray while you’re there.


I’m saving up to buy their copy of The Ascent of Everest published in 1953. Edmund Hillary signed it. Good place to buy extravagant presents for between $1,000 and $100,000.





SOME SAY YOU can never have a bad dining experience in New York. They’re wrong. While the city is dotted with excellent eating, it’s every bit as easy to have a bad meal in New York as it is anywhere else in the world. All it needs then is a little planning and forethought... and someone willing to add a few pounds in the name of journalistic integrity. Accordingly, after two weeks of extensive, fork-based research, here are my picks for the finest dining experiences in (and to) New York...

By NEIL DAVEY – ex-financier, luxurylifestyle journalist and professional foodie


Where New York scores particularly highly – and arguably trumps London – is in the mid-range of dining experiences. In London, that probably means gastropub


New York is home to some 54 Michelin stars (compared to London’s haul of 64). Three of these ‘belong’ to Le Bernardin which, simply put, is one of the world’s finest dining experiences. Since opening in 1986, the awards have flowed towards Eric Ripert’s exceptional seafood restaurant, including the New York Times’s top four-star rating and Top 20 recognition from the San Pellegrino 50 Best Restaurants list. They’re all on the money: dinner at Le Bernardin is something everyone should experience at least once. Ripert argues that “fish is the star of the plate, not the chef” and the freshness on display – I had to hold a mirror to the yellowfin tuna’s mouth


The thing I love most about Manhattan is that one cannot ever tire of it. The most iconic and obvious aspects of the city are pure magic – walking the avenues and taking in the architecture, visiting some of the top museums in the world, enjoying springtime in Central Park. And yet, beyond the obvious, there are so many hidden gems to discover, although nothing seems to remain secret for long in Manhattan. My recommendations would include The Strand on Broadway below Union Square for all types of books: there you can still get lucky and find a rare edition of an old photography book for the price of used. Or discover Forbidden Planet, one block north, for classic comics. For brunch, head to The Park on 10th Avenue, an institution perfectly located in the heart of Chelsea’s Gallery district, or Spring Natural on Lafayette – great as a starting point for shopping in Noho or Soho on a Sunday afternoon. Otherwise, in the evenings, you can find us with friends at Morimoto in Chelsea enjoying its revisited Japanese Cuisine. NICOLAS BOS, Worldwide Creative Director, President and CEO, Van Cleef & Arpels in the Americas

” 36


or something else featuring bleached pine, a dull atmosphere and a predictably ‘European’ menu. In New York, you can do all cuisines – particularly Italian – in the sort of surroundings that suggest something altogether, well, nicer. The newest, and possibly finest, addition to this category is Tribeca’s Locanda Verde. The room shouts – well, stage whispers – New York: dark woods, a great back bar, white linen, A-frame chairs. There’s also loads of natural light, which just makes chef/ patron Andrew Carmellini’s food look even more appetising. The theme, as the name suggests, is Italian. The execution is smart but with a sense of humour and a distinct NYC twist: lamb meatball slider, anyone? Pasta is, of course, fresh and generous, ‘Secondi’ courses include messy delights such as a shaved porchetta sandwich on a rosemary bun and an eggplant parmigiano hero, alongside more conventional grilled fish or a hanger steak, and there’s a fine collection of Italian wines to add to the experience. Even the sprouts get an Italian twist, roasted with pancetta and pecorino. And almost everything on the menu is between $10-$20. London needs this.

on the first course on the tasting menu to check it was definitely no more – certainly backs him up. However, the saucing, the combination of flavours and the presentation is all Ripert’s and it’s dazzling. Thanks to wine director Aldo Sohm, the drinks pairings are among the best I’ve had too: the tasting menu matches wander merrily from Burgundy to Patagonia, via Greece, California and, amusingly (and brilliantly) a dark Trappist ale. The room is calming, the service is graceful (it’s so effortless you know that they’re clearly working their socks off) and the whole thing is rarely, if ever, bettered. BEST SNACK EXPERIENCE

Whatever your budget, for a real taste of New York, it’s necessary to shun cutlery and dive in, fingers first. You can still do it with cutlery of course – one of the finest burgers I found was at Le Caprice ( – but a grabbed lunch or post-drink snack is a true flavour of this great city. The burger revolution is being led by Shake Shack ( and the joyously messy Five Napkin Burger Co ( but other foods


Working for Kilgour, the worldrenowned Savile Row tailor, I run frequent trunk-show trips to New York setting up a little area of London’s sartorial elegance in the Carlyle Hotel. After a hard day dressing the wellheeled hedgies of New York, I love to eat out at the Minetta Tavern on MacDougal Street. Given the laid-back, informal atmosphere and the exquisite attention to detail, it’s easy to see why this is Jamie Oliver’s favourite restaurant in town. Afterwards it’s a short hop over to the East Village for a nightcap at McSorley’s Old Ale House – refuted to be the oldest Irish pub in New York. The crowd is wonderfully mixed and it’s a great location to unwind and do a little people spotting. If you’re ever homesick on a Sunday go straight to one of the Brits’ favourite hang-outs, Tea & Sympathy, in the West Village – where you can be assured of a little taste of home. Here you can enjoy a traditional lunch of roast beef and Yorkshire pudding with all the trimmings finished off with a steaming bowl of apple pie and custard. PAUL VANOLI, Kilgour

are getting a reboot too. Artichoke Pizza ( has a decent claim to be the best slice in Manhattan, while Korean fastfood outlet Kyochon (kyochon. us) is doing amazing (double-fried, very spicy) things with chicken wings. Further south, The Meatball Shop (themeatballshop) does exactly what it says on the hoarding: meatballs, in a variety of flavours, with a choice of sauces or served, slider-style, in a bun. To finish, you could do worse than the virtually-dessert-only (except for excellent pork buns) Momofuku Milk Bar (momofuku. com) or gelato at Eataly ( It’s a terrible pun but Mario Batali’s food hall is a cavernous shrine to all things Italian and edible. All though possibly bow before Porchetta ( This Lower

preserves on his travels and serves them for breakfast – has to be worth a look, making the truffled eggs Benedict the icing on an already good cake. Somewhat inevitably, Le Caprice also scores highly first thing in the morning. It’s unfussy, understated but they do everything so well, from a stack of fluffy pancakes to my pink grapefruit and mint tea. Well, after two weeks (and a doctor-worrying 14 food stops), something had to give and there are few better ways to have your appetite restored and your brow unfurrowed than with Le Caprice’s exemplary service.

East Side hole-in-the-wall has a ten-item menu, but it’s the titular one – the superb roast pork sandwich – that really matters. It’s superb.

get into the spirit of New York than a flight that takes its food seriously? The flight in question is BA001, British Airways’ revival of the old Concorde number. It now refers to an ultra-comfortable all-business class flight from City Airport to JFK which, cannily, stops to refuel at Shannon airport in Ireland, meaning passengers can go through US Immigration while they wait. This means you arrive at JFK as a domestic flight, sail through baggage claim and can be in a car heading to Manhattan around 15 minutes after landing. The other twist is that in-flight catering has been designed by Lawrence Keogh of Roast so, while sipping on frequent glasses of Ayala and other fine grape-based beverages, your menu choices are less ‘beef or chicken?’ and more ‘grilled fillet steak, field mushrooms, new potatoes and tarragon cream sauce, roast corn-fed chicken with devils on horseback and creamed savoy cabbage or grilled halibut with pearl barley and saffron vegetable broth?’ Keogh has worked closely with BA to ensure that, despite the limitations of onboard kitchens and regulations, the dishes are worthy of the Roast name. Even the cheese is well kept.


Another meal where New York beats London is brunch. We’re improving (with Borough Market’s superb Roast and the meat-tastic Hawksmoor pretty much leading the way) but still in New York’s shadow when it comes to the undoubted joys of heading out for a morning meal. Ironically, it’s a Brit that’s currently leading the way Stateside though, with Birmingham-born chef April Bloomfield packing them in at the excellent (and Michelin-starred) The Breslin (thebreslin. com). From the simple menu, the steak with green sauce and fried eggs is particularly good although the special on our second visit – an omelette of bacon, oysters and jalapeños – solved the previous night’s excesses and better showed the creativeness of the kitchen. Breakfast at The Lowell ( is also worth seeking out. As well as being New York’s loveliest boutique hotel, anywhere that has a ‘Jammelier’ – a member of staff who collects great


Including an airline might be considered a slight cheat perhaps but what better way to







– Business Development Director of The Appointment Group, New York

Crosby Street Hotel is the latest addition to the Firmdale Hotels (of Soho Hotel and Charlotte Street Hotel fame). For a hotel in the middle of a city, The Crosby has made it its aim to introduce as many green, outside spaces as possible. The Meadow Suite is our favourite and has a vast, densely-planted private terrace opening directly off the sitting room. It’s aiming to be the first officially categorised ‘green’ hotel in New York, and even has a kitchen garden on the roof that supplies its restaurants. On top of this, it is perfectly set up for private dinners – its three meeting rooms feel more like sumptuous drawing rooms than meeting spaces. It also serves a delicious English afternoon tea, so we try to have meetings here as often as possible. THE GREENWICH HOTEL 377 GREENWICH ST; +1 212 941 8900; THEGREENWICHHOTEL.COM

Robert De Niro’s Greenwich Hotel is the

for Manhattan: downtown cool meets uptown classic. In the beautifully designed, minimalist building, there are 249 rooms and suites, including the vast, 4,000 sq ft Gansevoort Suite with its own spa. After a long day, the rooftop bar and pool is the perfect place to unwind. Chic, modern and offering total discretion, it’s a firm favourite with those in the know. THE BOWERY 35 BOWERY (AT 3RD ST); 212 505 9100

Eclectic and classic, The Bowery is loved by many of our clients. The rooms are huge – all with great views – and the lobby is an institution all of its own. One of the rules is that only the hotel’s guests may drink and relax here, so you are afforded total privacy from people popping in to try and spot one of the many celebs that stay here. Plus Gemma, the delicious Italian restaurant, is linked to the hotel so dinner is an easy choice. We’d choose The Bowery Terrace Suite if money were no object – not only has it got a huge terrace, but a private hot tub too.

H O T E L S perfect blend of subtle luxury and highclass service. Each room is totally different from the next – but all are wonderfully furnished. The renowned Shibui Spa is a darkly-decorated and utterly serene oriental delight. And Locanda Verde is the hotel’s renowned restaurant, providing delicious Italian fare, just like Bobby’s grandma used to make it. The Greenwich, though young, behaves like an Old Master in a city of whipper-snapper boutique hotels. The Greenwich – like the actor – knows what it’s doing and does it to perfection. THE GANSEVOORT PARK AVE SOUTH 420 PARK AVENUE SOUTH; +1 212 206 6700; HOTELGANSEVOORT.COM

The location and service of this luxurious hotel are constantly in demand with our clients. Situated on 29th Street and Park Avenue South, it is a perfect address




Slick European elegance with a hint of New York hip; they have over 4,000 books, all for sale (proceeds to charity), spread over the hotel, in minimalist and modern bookshelves... This is very popular with our clients, especially on short business trips. H The Appointment Group is an internationally renowned travel and events management company, with offices in London, New York and LA and a network of global affiliations. It has been providing award-winning travel clients, and organising high-profile events for select individuals and companies for more than 25 years. With expert knowledge of finance and corporate sectors, the Group offers a unique and personalised service, ensuring events and travel itineraries are faultlessly achieved.


Show Me The Money, Baby is famous for his glamorous shots of A-list celebs. Now he’s turned his creative talents to what really makes the world go round...





Negative Currency By David LaChapelle Better known for his provocative portraits of Hollywood stars, David LaChappelle has turned to social commentator in one of his latest works. In Negative Currency: Dollar Bills Used as Negative, LaChapelle’s layered transparency of the greenback shows every level of the US banknote – quite literally. Not only is LaChapelle having a dig at the pricing and evaluation methods in the art market – but making a broader jibe at the economic crash. According to Nili Goren, curator of Tel Aviv Museum, LaChapelle is criticising “the values celebrated by affluent society.” Er... I wouldn’t invite him round for dinner then, if I were you. For all sales on these and all David LaChapelle works contact Mira Dimitrova at Robilant+Voena,




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p45 . TOBY BLACKWELL . On Continental drift p49 . MIKE BAGHDADY . Making the most of Egypt


“When I came to look at Gieves & Hawkes, I saw huge potential; it’s a gem of a brand but it really hadn’t had much done to it for a number of years ” John Durnin Tailor-made For Growth . p46

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Bringing the EU to Book Scion – if such a word applies to an 82-year-old man – of the Blackwell book dynasty, Toby Blackwell’s main passion these days is getting the UK out of Europe. By JON HAWKINS

PHOTOGRAPH by Phil Weedon

THE WINDOWS IN the library of Toby Blackwell’s home just outside Oxford look out over a sizeable lawn. “See that tree?” asks Blackwell, pointing to a large apple tree on its own in the middle of the lawn. “That’s where Allen Lane came up the idea for Penguin books.” Blackwell’s father, Sir Basil – who was born above the eponymous shop his bookseller father founded on Broad Street in Oxford – was hosting Lane and other delegates of the joint Booksellers Association and Publishers Association conference for tea one Sunday in 1934 when Lane had his eureka moment under the apple tree, and the paperback was born. Toby Blackwell had his eureka moment – he calls it his “road to Damascus” – 70 years later in Bali, when he was given a copy of Ian Milne’s analysis of the true cost of Britain’s membership of the European Union, A Cost Too Far. Though Blackwell had no interest in Europe (“Didn’t understand it and wasn’t interested – I was too busy earning a living,” he says), Milne’s book stirred something in him and he began to read more and more into the subject. The more he read, the clearer it became to him that the UK would be better off leaving the EU. Now 82, Blackwell no longer sits on the board of academic bookseller Blackwell, though he owns 100% of the company’s voting shares. These days, he dedicates

“ I was a wild child. I

could pick every lock in the school at Winchester. I was far more interested in having a good time, jumping out of planes and rowing than learning… ”

most of his time, and some of his money, to helping the EU Referendum Campaign’s efforts to give the British public the right to choose whether or not the country remains in the EU. The Westminster-based campaign has eschewed the well-trodden route of courting politicians and celebrities, choosing instead a grass-roots approach, led by its spokesman, former Sun-columnist and Talk Radio presenter Jon Gaunt. “We have something unique,” says Blackwell. “Do we want any celebs? No. Do you think Joanna Lumley has studied the AV campaign in depth and detail? Do we want the politicians? No, we hate the politicians and we’re completely crossparty; it’s just the people and us.” And the people, according to Blackwell, are beginning to listen. The campaign now has 50,000 supporters and is growing fast, though he cautions that some, not least those in London’s financial industry, “need to wake up and see what the EU is doing to them”. The EU’s perceived roughshod treatment of the City, which includes a proposed Tobin-style transaction tax and the controversial AIFM directive, is “pure jealousy,��� he says.

Blackwell’s appetite for fighting a cause started when he first joined his father’s company in the early 1950s and immediately realised that many of the agents and contractors the company was using were overcharging, though he says he almost never entered the family business. “I was a wild child,” he explains. “I could pick every lock in the school at Winchester. I was really rather uninterested in my education – I was far more interested in having a good time, jumping out of aeroplanes and rowing.” He did, however, go to Oxford, where he read Philosophy, Politics and Economics (PPE). “Some of it rubbed off,” he admits. “In the end”. He describes his 55 years at Blackwell, during which he says he did every role going, as “hell on earth”, though his devotion to the business, and his determination to keep the family name above the door in exceptionally difficult times for the industry, is evident in the number of times he returns to the theme. In fact, Blackwell has already taken steps to secure the future of the company, setting up a new constitution in which 100% of the A-shares (with voting rights, but no value) will be controlled by a voting trust, and the B-shares will be placed in an employee partnership. Two trustees are in place to control the A-shares. “When I snuff it, they get the shares,” says Blackwell. “I’ve kept it so I can walk down the lawn and say ‘Gaffer’ – my father – ‘I’ve done my very best’.” For the moment, though, his focus is on “fighting the Eurocrats” and “scaring the hell out of the politicians”. And the man his fellow campaigners call ‘Trooper’ is adamant they will succeed. “If an MP doesn’t support us we will get people to vote against them,” he says. “If we get one scalp first, the rest will come.” A case of MPs being brought to book? H To find out more about the EU Referendum Campaign go to





Tailor Made for Growth JOHN DURNIN,

CEO of Savile Row tailor Gieves & Hawkes, on his vision for driving the brand forward and taking other high-end artisanal brands into the global emporium

and at the end of this year we will have 100 doors. We’ve aggressively expanded in China in the past five years – the business is large, and it’s growing at around 30% a year. So is everybody else’s, we’re not doing anything extraordinary, but we’re doing it very well. I have two focuses, having re-established the brand in the UK: to establish the business in the US and to really drive the business in China forward.

JOHN DURNIN JOINED tailor Gieves & Hawkes as CEO in April 2010 from the Richemont group of luxury brands, where he was chief executive of its Asia Pacific division. A year on from his arrival, Durnin is preparing to relaunch Gieves & Hawkes’s flagship store at No 1 Savile Row, which will now house bespoke shoemaker Carréducker, vintage gift emporium Bentleys and grooming shop Gentlemen’s Tonic alongside its traditional tailoring services. Durnin’s future plans for the brand, which was founded in 1771 by Thomas Hawkes, include establishing the brand in the US and expanding its presence in China. On revitalising the Gieves brand I joined the business having formerly lived out my existence in Asia for many years with the Richemont group. I joined because, when I came to look at Gieves, I saw huge potential; it’s a gem of a brand but it really hadn’t had much done to it for a number of years. My vision was to repolish and revitalise it a bit with a new injection of blood. Simply being a bespoke tailor is not good enough. Not to criticise the tailoring shop – it’s truly magnificent and I was bowled over by the quality, artisanship and the passion behind the brand – but I also saw that it was just a tailor’s. It was making wonderful products but there was so much more we could add to it. The intention is to make it an emporium of artisans,

“ When I came to look

at Gieves, I saw huge potential; it’s a gem of a brand but it really hadn’t had much done to it for a number of years… ” 46


with vintage gifts, grooming, a bespoke shoemaker and a blazer room. I want to make it a real experience for the customer. On internationalising the brand The vision here is not to internationalise it by opening 500 new doors. I’ve been in the luxury goods business for a long time, and I think we’re confused at the moment; there’s a luxury goods store on every corner in every city all over the world. I think in the 1980s and 1990s that was OK – things were expanding – but it’s going the other way now. People who are really looking for luxury are looking for something that’s hard to find, that is artisan, is bespoke, and is handmade. That’s what I want to do with Gieves – I want to internationalise it, but I don’t want a store on every corner. I want it to be a destination in just the major cities in the world. On the plans for expansion Currently Gieves is based mainly in the UK and greater China. In the UK we have 14 doors, having closed ten unprofitable doors over the past ten months, and I don’t want to expand any more than that. About 12 years ago we invested in a partner in China,

On his career before Gieves I started out behind a counter in Harrods many moons ago. I went to Asia Pacific in 1989 and went to Japan for eight years, then lived in Hong Kong for eight years and various other places in between. I had a great career with Richemont and spent the last five years establishing the mainland Chinese business for Dunhill, but I decided that what I really wanted to do after corporate life was to manage a brand and, whatever size it was, to be able to develop and nurture it myself. That’s why I joined Gieves. On modernising a historic brand Because I’ve been in the luxury goods industry I realise that anybody with enough investment and money can change a brand in any direction, but you’ve got to respect where you’ve come from. This brand’s over 200 years old – it’s not about high fashion, it’s about beautiful products and great service, and I’m putting some new services into it. Your heritage is your benchmark, but it’s got nothing to do with moving the brand forward – if you just sit there, as a lot of brands do, and say ‘We’re 200 years old’ and not add things in, not change the traditions, you just shrivel up and die. So while I respect and love that heritage, it’s all about adding new things and changing that tradition, trying to be a bit more relevant for the modern day. H – Jon Hawkins

YOU THINK COMPETITION IS FIERCE WHERE YOU ARE? Imagine the most dangerous high-rise in the world, where you must fight for a living space no wider than your body, where you must fight to protect your children from scavengers, where the search for food takes you into direct conflict with the insurmountable threat of human industry. When they leave the cliffs, seabirds do not enjoy the same protection as life on land. That’s why we’re working hard to help create Marine Protected Areas – where seabirds and all sealife can thrive.

Safeguarding sealife is just one of the innovative RSPB projects that needs the kind of help only you can give. Please invest in nature with the RSPB. Contact: Margaret Robinson: 01767 693425, Charles Goulding: 01767 693150,



Out of Chaos, Order

Events across the Middle East – changing dramatically on a daily basis – mean huge market volatility. MIKE BAGHDADY sees great potential for the medium-to-long-term investor THE ARAB REPUBLIC of Egypt’s 18 days of protests changed the face of the Middle East in January, with its 85 million population left leaderless and its financial exchange taken offline. The EGX has since resumed operations, though in a staggered manner using emergency procedures, including circuit breakers on individual stock price changes. No one could have predicted what happened in Egypt. That just shows you that in the world of frontier markets, you can’t be sufficiently certain about anything. Having just returned from Egypt, and a series of talks and meetings with officials and the American University Faculty, I must say I am enthused by what I saw. We are consequently discussing setting up a new fund there – The Egyptian Opportunity Fund – that we are going to invest in and become its Technical Trading adviser, as well as advising the EGX and its traders (and traders-to-be at my alma mater, the American University of Cairo) how to deal with this unprecedented volatility. Volatility on this scale represents great opportunities for investment (but, lest we forget, also pain for the common man) and it’s no surprise that traders have been scrambling to take advantage of the pockets of value that they are identifying, day-byday, in the hard-hit Gulf. Egypt’s stock exchange, which ranked fifth in the world in the 1940s and remains a board member of the World Federation of Exchanges is offering huge buying opportunities in some of the more beatendown parts of its market. Fortune favours the brave. And uprisings and political turmoil in the risky emergingmarket world mean good entry points for long-term investors to pick up stocks at bargain prices and hold them for years until valuations rise. Whether you should go short or long at the moment depends squarely on your immediate, medium- and long-term outlook for the region.

If you believe the Middle East crisis could escalate, resulting in major oil disruptions and causing energy prices to go through the roof, you wouldn’t want to invest there at the moment. But if you buy my argument, that the worst has probably passed [in terms of oil disruption] and the situation is stabilising, then it is a really strong buying opportunity. Impressively, the prices of the blue-chip Egyptian stocks are quite a lot higher than the lows back in 2009, which represents a massive buying opportunity. In the medium-term, development in the Middle East also looks very promising, with Egypt its diamond in the rough. Egypt represents fantastic financial opportunities, from tourism to steel, but the biggest opportunity is that the mindset there now is

“ Egypt offers fantastic

financial opportunities but the biggest opportunity is that the mindset there now is to create an investor’s paradise… ”

to create an investor’s paradise, and become the most successful emerging market. Other regional markets, such as Qatar and UAE are also on their way and have a high chance of being upgraded to emerging markets by MSCI this year. Should that happen, these two frontier markets will see their stock markets climb markedly. Stability in oil-rich Saudi Arabia will be crucial to preventing the Middle East crisis from escalating and disrupting global oil supply. Saudi Arabia will be the wild card that could either worsen or stabilise the turmoil in the MENA region that has led to regime change in Tunisia and Egypt, an ongoing war in Libya and violent uprisings in Bahrain, Yemen and Syria. Investing in obscure and illiquid frontier markets, where volatility, protectionism, capital controls and political risk are high, isn’t for the fainthearted. These markets could swing wildly over the short term. Take, for instance, the EGX. After turning in handsome gains of 15% in 2010, the EGX 30 has slumped nearly 25% since the beginning of the year. The EGX 30’s 22 percent plunge this year has left the index valued at 1.5 times net assets, compared with about 1.9 times at end-2010. Regardless, I think the Egyptian Exchange will prosper in the near future. EGX’s strong performance augurs well for the long run, and Egyptian stocks are among the strongest in emerging countries. For me, all of this has reignited a passion to go back to where I started, in the markets of Egypt – where I ran one of the largest grain houses in the Middle East as a young man, before leaving for New York. While it pains me to see the upheaval, I relish the challenge of teaching a new wave of traders there how to profit from it – and, we hope, to make the EGX one of the world’s greatest markets, once more. We aim to build new economies and industries here that will dwarf the pyramids. H




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This advertisement is not intended for, or directed at, retail customers. It is for professional customers only. Should a retail customer obtain a copy of this advertisement, they should not base their investment decisions solely on the basis of this, but must seek independent financial, tax and accounting advice. Issued in the UK by the London Branch of Société Générale. Lyxor and Lyxor ETF are names used by Société Générale to promote the products of Lyxor Asset Management. Société Générale is a French credit institution (bank) authorized by the Autorité de Contrôle Prudentiel (the French Prudential Control Authority). Société Générale is subject to limited regulation by the Financial Services Authority in the UK. Details of the extent of our regulation by the Financial Services Authority are available from us on request. Lyxor ETFs are open-ended mutual investment funds established under French Law or Luxembourg Law. The funds may not be sold to US persons or in jurisdictions where such offering or sale has not been authorised. The index tracked by a Lyxor ETF may be volatile, investors capital is at risk and an investor may get back an amount less than originally invested. The telephone number and e-mail address are provided by the London Branch of Société Générale for technical questions relating to Lyxor Asset Management products only. Calls to this line and other Société Générale telephone numbers may be recorded. For further details please visit

Réalisation : NSL Studio | (110414)


p56 . sartoria . in praise of Jermyn street p60 . rEViEWs . Going wild for Wild Honey p68 . traVEl . Going round the Big Bend in texas p78 . ProPErty . london to Cyprus via Catalunya


“We have the best beaches in the world – who needs Honolulu when you can catch a big one in Polzeath and still grab a pint and a pasty afterwards?” tim slee From Newquay to Grand Cay . p64


New York State of Mind We all know that Old Bond St is where you go to buy sparkly, shiny things... but as MARK HEDLEY explains, inspiration seems to be coming from across the Pond

Harry Winston Traffic earrings and pendant, from £16,000 This is about the only time you’ll be happy to see a traffic jam. The playful diamond-drop design is inspired by New York’s notorious tailbacks – though we reckon yellow diamonds would’ve been more fitting.

Harry Winston Skyscaper ring, £11,000 Still to this day one of the prettiest man-made structures ever built, the Chrysler Building is the clear inspiration for this beautiful ring from Harry Winston’s Manhattan collection. Timeless art deco design at its best.




DeWitt Twenty-8-Eight Regulator ASW Horizons, £208,100 DeWitt’s 2011 novelty is a tribute to art-deco design and some of New York’s most iconic buildings. Inside it has a new automatic tourbillon movement with a sequential winding oscillator. So it’s clever and pretty.




Graff: From Here to Eternity? interviews Michel Pitteloud, who has moved from Bulgari to head up Graff Watches – and sees no reason not to anticipate 500% growth over the next five years ROBIN SWITHINBANK

THERE CAN’T BE many watch companies predicting 500% growth over the next five years. The watch industry has reported yo-yo figures since the global economic crisis hit, and although there are predictions that 2011 will be a big year, it’s still possible that dark hours lie ahead. So it’s odd to hear Michel Pitteloud, former president of Bulgari Time and now CEO of the emergent Graff Watches business, talking in such optimistic terms. “Graff is very exclusive and not about quantities,” he says. “But five years from now we could sell anything from 3,000 to 5,000 watches a year.” To put that in context, the brand has so far sold half the 1,200 watches produced since the launch in 2008, and expects to



produce just 1,000 watches this year. And the only sales points are the company’s global network of 30 boutiques. As a watchmaker, Graff falls into an awkward category – that of high-end jewellers trying to break into the high-end watch market. Watch aficionados aren’t usually all that comfortable with this, not least when presented with a collection of watches powered by beefed-up ETA movements (Pitteloud makes no attempt to cover up the provenance of his watches’ power units) that start from £15,000. Pitteloud is unfazed by this. In fact, he’s sure the watches sold so far (including a diamond-encrusted piece at £1m) have been bought by aficionados who already own a Patek Philippe, a Jaeger-LeCoultre and an arm’s length of Rolexes. So if this is true, why are these purists buying Graff watches? “Because Graff is a very prestigious brand,” he explains. “And the people who buy our watches like the look, which is different but not extreme, unlike MB&F or Urwerk. If you look at our website, or our magazine advertisements, we show the style of the watch, but very little about the technicalities.” Graff has built a reputation and client base on the aesthetics of diamonds, so perhaps no less should be expected of its watches, which are distinguishable by their bezel, modelled on the facets of a brilliant diamond, and by two precious stones – a triangular emerald at 12 o’clock, and a diamond set into the crown. Then again, last year, the company unveiled Calibre 1, its first in-house movement, and Calibre 2 was launched at Basel this year. Pitteloud reveals the goal is to equip all Graff watches with proprietary movements, a sign that he not only recognises the prestige this would bring, but that he also understands that today’s watch buyers are better educated than ever

“ The people who buy

our watches like the look, which is different but not extreme. Look at our magazine advertisements: we show the style, but little technicalities ”

before when it comes to mechanical details such as movements and tourbillons and will come to demand pure pedigree when investing in exclusive luxury timepieces at such exclusive prices. But still, his predictions of growth are bold, not least when you consider Graff’s clientele are mainly women, and the watch division is aimed largely at men. “Doing men’s watches is doubling our client base, and the watches are successful,” says Pitteloud by way of dismissing this, pointing out that men accompanying female companions on shopping expeditions are glad of the distraction. “The more watches we put on people’s wrists, the more publicity we have,” he continues. “Imagine one guy goes to Porto Cervo in the summer wearing a ChronoGraff. He’s on his yacht with his friends; his friends ask what the watch is; they see it’s Graff, that’s it’s different and exclusive; and boom! Whoosh! That’s our most powerful tool.” If the marketing doesn’t sound very innovative, it’s because it’s not. But that doesn’t mean it won’t be effective. Pitteloud knows the Graff brand and its customers, and admits his strategy relies on little more than the strength of that brand, the standout design of his watches and man’s hard-wired pursuit of objects that other people don’t have. No doubt you would get short odds on him succeeding. H


Rewind Time for Golden Oldies hails Panerai’s Bronzo – a thing of beauty made in the best of Florentine traditions, while TRACEY LLEWELLYN admires Montblanc’s Nicolas Rieussec Edition


Montblanc Nicolas Rieussec Chronograph Anniversary Edition

Panerai Luminor Submersible 1950 From the earliest of its watches made at the request of the Italian Marina Militare to the attractive brown-toned watches of 2010, the simplicity of the Panerai concept and the power of the original design is striking and thankfully, the brand has restrained variation on design within the limits of those original templates. And, importantly in terms of the inspiration for today’s Panerai, the company has always set new standards in terms of performance as well as design. The parameters set by the Marina Militare meant that these were the first wristwatches designed to survive prolonged submersion at any significant depth. While the brand’s catalogue does include movements that are quite as complicated as any, the core point of Panerai is to make excellent, robust watches in the best of Florentine traditions, a stance emphasised by 2011’s Calibre 3000 series movement as well as the existing Calibre 9000. The automatic ‘tractor’ Calibre 9000, designed and made by Panerai at Neuchatel in 2009, is the power behind

this year’s new, bronze-cased Luminor Submersible 1950 – a massive 47mm watch, which has become known as the Bronzo (PAM382) since it was unveiled in January at the SIHH fair. Bronze apart, the watch is almost identical to the titanium PAM305, but the Bronzo falls within Panerai’s manifaturra line, meaning it is more expensive than their watches equipped with third-party movements and the use of bronze adds to the cost, of £6,500. It is, unsurprisingly, a seriously robust watch, being rated to 300m despite the crystal case-back. The bronze, however, makes all the difference. The age patina that bronze acquires (differing with each piece depending on the time worn and the skin of the wearer) combined with the murky green of the dial make this a really distinctive watch, redolent of all the history Panerai is so keen to underline, both maritime and of Florence, and at the same time plain great design in its own right. James Gurney edits QP,

This year the chronograph – the complication invented by Nicolas Rieussec in 1821 – celebrates its 190th birthday. To date, all Montblanc chronographs have been based on Rieussec’s original model and for 2011 the brand is launching the limitededition Nicolas Rieussec Chronograph Anniversary Edition, with 190 watches in red gold, 90 in white gold and 25 in 950 platinum, all containing a hand-wound Montblanc manufacture movement. The in-house MS RllO calibre is assembled from 263 individual parts, including classical column-wheel control, as well as a nearly friction-free vertical coupling that prevents wear when the chronograph function is allowed to run for a lengthy period of time. The rapid-reset mechanism for the hour and date is extremely practical for travellers who journey from one time zone to another. These indicators can be reset either clockwise or counterclockwise and without affecting the position of the minute hand. The hand-wound Montblanc manufacture movement has two barrels that together amass a 72-hour power reserve. Tracey Llewellyn is deputy editor of QP




PhotograPhs by Dan Wilton

The Real St Jamesâ&#x20AC;&#x2122;s Palace A connoisseur of the finer things in life, Martin Deeson recommends The Cavendish Hotel as the ideal St Jamesâ&#x20AC;&#x2122;s bolthole from which to discover the gems of Jermyn Street 56


rewards JerMyn street

THere are some streets in London that have more going for them than entire English cities (or Swiss ones for that matter). St James’s has more to divert a gentleman of taste than Ripon, say. Savile Row could probably distract a stylish gent for several lifetimes longer than if he were confined to Coventry and there is more on Bond Street to seduce a lady of leisure than in Hull, Salford and Sunderland combined. For me, Jermyn St is one of the greatest of these London thoroughfares. From the Cavendish Hotel, where you can find a suite with a view to rival any in New York, to Briggs of St James, nestling away in one of the neighbouring passageways where you can have your hair cut by a man who has been working in the same premises for 52 years, to the shirtmakers Harvie & Hudson, making shirts on the street since 1949, and Wiltons, which has been serving oysters, fish and game since 1742, there is enough on Jermyn St to keep the most demanding man entertained for a lifetime. Jermyn St is an area that has thrived on its proximity to the Palaces – both Buckingham and St James’s. Many know that the Cavendish Hotel was founded by Rosa Lewis (the original ‘Duchess of Duke St’ and ‘Queen of Cooks’) who was famous for having an affair with Edward VII in the 1890s and, so the rumours say, much longer, but few are aware that the whole area, and perhaps even the West End itself, owes its existence to a similarly scandalous dalliance involving a Queen and the disputed paternity of the future King of England. The Cavendish itself is a Jermyn Street landmark and provides the perfect place to stay overnight when it’s just not possible to get back to the country or when a Jermyn St shopping trip, or indeed dinner, goes on longer than expected. Despite humble

“ The Cavendish is a

Jermyn St landmark and provides the perfect place to stay when it’s not possible to get home or a shopping trip goes on longer than expected… ”

beginnings in service, Rosa Lewis bought the hotel for £5,000 in 1902 with money provided by a mystery admirer. Many assumed that this admirer was Edward VII himself, and for many years rumours persisted that there was a secret tunnel connecting the hotel and Buckingham Palace. She was given the title Queen of Cooks by no lesser chef than the great Escoffier himself, and her overseeing of the hotel’s bar cemented Jermyn Street’s reputation as a place where gentlemen ate and drank and came to be clothed. A perfect gents’ shopping trip along Jermyn St would take in the handmade shoes at Barkers, the exquisite tailoring at Favourbrook, and the walk-in humidor at Davidoff. This is a street where, to paraphrase Fergus Henderson over at St John, you can enjoy ‘snout-to-tail shopping’. So how did Jermyn Street become a centre for all that is stylish in Central London? Over lunch in Petrichor, the restaurant at the Cavendish, historian Anthony Adolph, author of Full of Soup and Gold: The Life of Henry Jermyn, told me the story of the man they called ‘the father of the West End’. Sir Henry Jermyn was the 17th-century equivalent of a career civil servant crossed with a celebrity; he was a courtier, and as such found himself the loyal attendant upon the ill-fated King Charles I. When the king’s future wife, Henrietta Maria, was to be escorted from France it was Jermyn they sent, and it was with Jermyn she bonded, as he was one of the few courtiers who spoke French well enough to amuse her and no doubt provide a shoulder to cry on as she contemplated a lifetime ahead of her in this country of rain and les rosbifs. Sir Henry Jermyn did everything he could to help the royalist cause in the civil war, ending up with a personal debt of £50,000, equivalent to about 5% of the State’s annual income, but was still unable to prevent Charles losing his head on nearby Whitehall. When Charles II was returned to the throne in 1660, it was in no small part down to the efforts of Sir Henry Jermyn and Henrietta Maria who had remained close and weathered the rumours which had inevitably circulated about the parentage of Charles II, who, unlike Charles I, was a big man, tall and powerful also, unlike all his

street life: (opposite, and bottom, above) Martin Deeson has at least ten years taken off by the expert ministrations of the hairologists at Briggs of Jermyn st; (above, top) a drawing room at the Cavendish hotel

male relatives, though strangely very similar in appearance to Sir Henry Jermyn himself. One of the many contemporary allegations was “the King was a bastard and his mother was Jermyn’s whore”. But whether it was because Charles II was Jermyn’s son (an intriguing possibility ▶



rewards JerMyn street


“ Jermyn Street and St

James’s became the home of all that was stylish and modern in London, while the City was left to the filthy business of money-making ”

▶ having a bearing on the lineage of the current royal family, which would only be settled by DNA testing) or because of the vast debt he had incurred, Charles granted Jermyn huge swathes of land from the court of St James’s right up to Soho on which to build a new London, the West End, to stand as a modern classical city to rival ancient Rome and the newly rebuilt Paris, an edifice of stone and brick to stand as a counterpoint to the medieval hovels of the City of London, most of which had been obliterated in the Great Fire. After the huge building project was complete and London’s most fashionable streets had been built, the failure of the City of London to rebuild itself on the Parisian model after the Great Fire of London in 1666 settled things once and for all – and Jermyn St, named after its founder, and St James’s, named after the King’s palace – became the home of all that was stylish and modern in London, while the City was left to the filthy business of money-making. Nowadays, many of the money makers have moved West (well, the ones who read HEDGE magazine) which is good, as you, dear reader, will have a shorter walk to get some shoes made at Barkers of Jermyn St while you relax over a glass of bubbles in the bar at The Cavendish. H The Cavendish Hotel, 81 Jermyn Street, London SW1Y 6JF; classic double room from £189 (excl. VAT);; 020 7930 2111 ‘Full of Soup and Gold: the Life of Henry Jermyn’ by Anthony Adolph is priced at £17.95 (plus £2.50) available from

the aPParel oft ProClaiM the Man: (from top) Mr Deeson discusses all things cigar at Davidoff’s walkin humidor; a classic double room at the Cavendish hotel; being fitted out for a bespoke shirt at favourbrook; and finally, the Deeson plates of meat are measured at Barkers for a pair of bespoke brogues



a genTleman’s Jermyn sT Harvie & Hudson 77 & 96/7 Jermyn st the classic Jermyn st outfitters for bespoke and ready-to-wear in a variety of styles from old-school to funky. Barker shoes 38 Jermyn street retail outlet for the almost indecently excellent shoes produced by Barker shoes at its northamptonshire workshop. davidoff 35, st. James’s st Despite Davidoff’s association with cigars from the Dominican republic, in the world famous humidor at the corner of Jermyn st & st James you will find probably the largest selection of great cigars to be found anywhere in europe. Favourbrook 55 Jermyn st for those whose taste in shirts tends to the flamboyant, favourboook offers a stunning range of peacock-ish designs alongside more sober alternatives. Wiltons 55 Jermyn st Confusingly (for their post) at the same number as favourbrook, is the finest pure-english restaurant in london. The Cavendish Hotel 81 Jermyn st the ideal place to sleep or play when visiting the street on which every man should source his clobber.





Private dining, press launches, board meetings, drinks receptions, canapé parties and weddings. P r i v at e D i n i n g r o o m - 15 to 28 seated | 25 to 50 canapé party F i r s t F l o o r r e s ta u r a n t - 40 to 70 seated C o C k ta i l B a r - alfresco drinking l o u n g e - 30 to 150 drinks receptions, canapé parties and press events a r t g a l l e r y - 30 to 50 drinks and canapé parties, exhibitions and press events l a C a v e - bespoke wine tastings 10 to 40 standing | 8 to 16 seated w


ews oF ay F a i r 10 Lancashire Court, New Bond Street, Mayfair, London, W1S 1EY T. +44 (0)207 518 9395 F. +44 (0)207 518 9389 E.


Decisions, Decisions, Decisions... When tim slee headed for Wild Honey in hedge heartland, he was overcome by an entirely uncharacteristic bout of indecision. Just as well – letting the waiter choose paid off. In spades

Wild Honey knoWs its market. Oak-panelled walls, sumptuous seats and exceptional artwork – it could be any hedge fund office down Curzon St. A hedge fund office, that is, with one hell of a cook. Chef Anthony Demetre serves up one of those Michelin-starred menus that make you fall apart. You know: you’re normally a decisive, assertive individual who understands what you want in life. You sit down, are presented with a menu and within minutes you’ll be a gibbering wreck. “Oh, I just don’t know! Shall I have the slow-cooked shoulder of venison, handrolled macaroni and Parmesan – or would the also-slow-cooked pork belly with Herefordshire snails and celeriac purée be better?” And that was just for the starters. As you might have picked up, the dishes are not exactly lacking in substance. No spume here, thank you very much. As it goes, I opted for the pork – who’d have thought that snails from Herefordshire could be so plump and tasty?



For the main course, the decision wasn’t any easier. After the meaty starter, I went straight to the top two fish offerings. Sea bream and Orkney mussels with trompette mushrooms – or traditional bouillabaisse. Oh crap, it was happening again. I knew the sea bream would be light and fluffy,

and probably better for me – but proper bouillabaisse, with rouille-slathered bread islands floating on top… I closed my eyes and pointed. Bouillabaisse it was. The Provençal fish broth was just as I hoped – you could practically smell the Mediterranean sea air floating in across the Marseille coast. Predictably, there was also a dessert dilemma. Not whether or not to have one – that was a no-brainer – but whether to go with my heart, and select the classic custard tart with clementine marmalade or my head and go for the restaurant’s signature wild honey ice cream with crushed honeycomb. Well, that was it. I couldn’t decide. Throwing my hands up in the air in desperation, the kindly waiter took pity on me – and put the two together. Who’d have thought being indecisive could be so profitable? I wouldn’t recommend it as a hedging strategy, though. H Wild Honey, 12 St George St, W1S 2FB; 020 7758 9160;


One of Nature’s Grape Events is not always a fan of natural wines – oxidation and the grape juice going bad are all-too-common problems. But Mathieu Lapierre’s Morgon has turned this sceptic…

GaretH Groves

‘natural’ Wines – hippy fad or London’s trendiest drinks? The latest buzzword in wine is ‘natural’. A loose movement has sprung up in recent years promoting wines that are deemed to be less industrial than those you see on a supermarket shelf or your average restaurant wine list. There is no agreed definition of what constitutes a natural wine but most are made with minimum human intervention in an attempt to ensure the end product is as close to simple fermented grape juice as possible. Paris has long been a hotbed of natural wine but London is fast-catching up – with bars such as Terroirs, Brawn, Artisan & Vine and Bar Battu proudly touting their natural credentials. So, are these wines the most exciting on the market? In some ways, yes; the best examples are thrillingly different. If you are a wine fan looking to try something new and vibrant, get down to one of the aforementioned bars and fill your boots. I’ll see you there. The problem is not all natural wines hit these heights. Minimal intervention can mean adding no sulphur dioxide and no filtering. In very simple terms, this means the wine lacks protection from oxidation or any unwanted bacteria. Leave the sulphur out and you greatly increase risk of the juice going bad.

The biggest beef I have with the most virulent advocates of natural wine is that some of them are apologists for badly made, or spoiled, wine. The first duty of every glass of wine is to be drinkable. It is a sentiment that natural winemaker Mathieu Lapierre agrees with. Mathieu’s late father Marcel is renowned as one of the fathers of natural wine in France but Marcel is no slave to ideology. Mathieu stresses the need to put quality above all else, to ensure the consumer has a fantastic experience. Without that you don’t have a future.

Now, that’s a bouquet ruinart interpretation giftbox Forward-thinking champagne houses realise that to stand out among the multitude of French froth they need to do something a little different. Armand de Brignac has gone for size (producing the world’s largest bottle, Midas, at 30 litres); Dom Perignon has gone for style (Andy Warhol labels, anybody?); and Ruinart has plumped for, er, smell. But in a good way. The idea behind the Ruinart Interpretation Giftbox is to explore the aromatic bouquet of Ruinart’s Blanc de Blancs. So, you know

Mathieu’s is in untrendy Beaujolais, a world away from the multi-millionaires and their chateaux in Bordeaux. His Morgon 2010 won’t age for decades or double in price on the secondary market but it is one of the best wines I have tasted this year – natural or otherwise. It is fresh, vibrant, bright and extremely drinkable; just the job with a plate of charcuterie or a rustic stew. In Mathieu’s words, it is a vin de plaisir – and that is something far more wines should aspire to be. H £17.50 a bottle from

when your wine snob mate says ‘there’s a hint of jasmine in there’ – this will help you work out what he’s on about. There are eight phials included in the box, each containing one of the principal aromas that make up its bouquet: lemon, pineapple, peach, pink peppercorn, ginger, citron, cardamom and, you guessed it, jasmine. Thin strips of unscented paper are also stored in a small drawer, so at any moment you can whip them out for a game of ‘guess the aroma’ – which is much more pleasant than it sounds. Also, the sprays are handy if you’ve run out of your usual eau de toilette. – MH





PhotograPh by Chris gomersall (

Shame That Hangs Around Our Necks As in the famous Coleridge poem, it was once considered a curse if you killed the majestic albatross. Sadly, modern fishing techniques have been responsible for killing 100,000 a year AlbAtrosses Are, without doubt, some of the most extraordinary and iconic creatures on the planet. These huge and majestic seabirds have wingspans of up to 11ft, and can glide over oceans for thousands of miles, spending years at sea without returning to land. A grey-headed albatross from South Georgia was recorded having circumnavigated the globe in a mere 46 days. The rhythms of albatrosses’ lives reflect the fact that they have evolved to live for a long time – up to 60 years. In the larger species, a female will lay a single egg only once every two years, and the chick that she hatches will take up to ten years to reach maturity. Then it too will find a mate, and start rearing its own young. But around 100,000 albatrosses have been killed every year. They have been dying in such vast numbers that they can’t breed fast enough to keep up and this is putting them in real danger of extinction. Extinction is not a word to use lightly. It means the final, irrevocable disappearance of a species from the face of the earth, never to be seen again or enjoyed by our descendants. Some 17 of the 22 albatross species are now under threat of extinction. The main cause of this is large-scale, commercial long-line fishing. Long-line fishing is



the practice of using thousands of hooks to attach bait to long fishing lines, some extending up to 80 miles. These lines are then set from the backs of fishing boats where the hooks, loaded with squid and fish bait, eventually sink below the surface of the water. Before the lines sink, albatrosses try to seize the bait and become caught on hooks, before being dragged under water and drowned. Many thousands of these hooks are set off the coasts of Africa, South America and Australasia every day. Solutions to the problem do exist. Streamers, or ‘Tori’ lines, attached to the stern of the vessel, billow in the wind and scare the albatrosses away. Adding weights to the fishing lines make them sink faster, and further reduces the risk of snaring seabirds. Setting lines at night or dyeing baits blue helps too as the birds are less likely to see the baits. The AlbATross TAsk Force

scientific research on albatross declines. When at sea, they teach fishermen how to use a range of measures that save seabirds. When on shore, they hold seminars for fishermen and meet with fishery managers. This is tough but vital work. Fishing vessels are not easy places to live, offering few creature comforts. But what these Task Force members are doing is on the front line of conservation and is already making an impact. Task Force members working in South Africa, Brazil and Chile have shown that adopting these simple measures has led to over an 85% reduction in albatross numbers caught in those fleets. But there is still so much to do. Now is the time to act. The RSPB needs your financial support urgently. With your help, it can halt the extinction of the majestic albatross in its tracks. If we hesitate, however, it will be too late. Just £25,000 pays for an Albatross Task Force member and all their equipment for a whole year. H

Out with fishing fleets on the southern oceans, the 15 members of the Albatross Task Force brave harsh, sometimes dangerous conditions for weeks at a time. Their work is to make these measures routine while also performing valuable

To find out how you can help support this vital work by becoming an Investor in Nature contact Margaret Robinson 01767 693 425; margaret.


From Newquay to Grand Cay As a proud Cornishman Tim Slee thought he knew a thing or two about great beaches. Then he went to the Cayman Islands. No pasties. Or Doom Bar. Rumâ&#x20AC;&#x2122;s pretty good, though 64



PhotograPhs Cayman tourist board

the big easy: (clockwise, from main pic) lazing on the turquoise waters of the Caribbean; breakers on the rocks; Caribbean Club pool and villa; snorkelling and scuba diving are an essential element within any trip to the Caymans

As A CornishmAn, I’ve never been wild about beach holidays. We have the best beaches in the world – who needs Honolulu when you can catch a big one in Polzeath and still grab a pint and a pasty afterwards? (My less kind colleagues would also point out that I suffer from undiagnosed ADHD, whereby I am literally incapable of focusing my attention on anything for more than 30 seconds, so the idea of two weeks in a hammock with Wilbur Smith – the book, not the author, obviously – is as appealing as contracting the Ebola virus.) But that was before I fell in love with the Cayman Islands. Yes, it has beaches. (If you promise not to let any fellow ‘Kernows’ read your copy of HEDGE, I am even prepared to concede they might even pip Polzeath to the post. Can’t get a pasty, though...) Flying into Grand Cayman, if you’re lucky enough to have a window seat, is incredible. I was going to tell you about the turquoise seas, the bleached beaches, the gem-like setting but my editor has told me a million times to avoid clichés like the plague. Suffice it to say, this island is the atheist’s equivalent of Paradise. Nirvana? Oh no, that’s Buddhist. Valhalla? Oh. Norse, I’m told. Well, whatever. Utopia. You get the picture, I’m sure.

And given the readership there is another reason to visit – between 50%- 75% of the world’s hedge funds are domiciled here. High time for a business ‘trip’, then. We were staying at the amazing Caribbean Club, a 15-minute ride from Owen Roberts International Airport. If you advise them of your flight number and arrival time, they’ll send a driver to bring you home. And what a home. We had a palatial three-bedroom, three-bathroom villa overlooking the glorious white sands of Seven Mile Beach (of which, more later). It’s a fabulous base, just minutes from the capital, George Town, with its shopping boutiques for those in the mood for a little spending – think Bond St meets Baywatch. ▶

“ The idea of two weeks

in a hammock with Wilbur Smith – the book, not the author, obviously – is about as appealing to me as contracting the Ebola virus… ” 65




▶ We swerved that and enjoyed a couple of rum and cokes sitting outside in the blazing glare of the sun on the beautiful harbourside. We had bigger fish to fry. Literally. (Bigger fish, that is. Not the frying thing.) We’re talking stingrays. We went for Dive Tech’s two-tank option, that opened up an incredible world of underwater reefs, fish that I’d only ever seen in Finding Nemo (er... I took my nephew), culminating in the incredible experience of swimming with stingrays at Stingray City. Feeling these incredible creatures glide serenely past you is an experience that will endure for a lifetime. (And don’t worry if you don’t dive – there is a sandbar at Stingray City where you can stand up to your waist with these denizens of the not-so deep swimming around you.) The experience was both awesome and humbling. Next up, in my avoidance of Wilbur Smith (nothing against the bloke personally, just need to keep myself busy) was a



submarine trip. When I got down to the dock in George Town I rubbed my eyes and did a double take. For a minute I thought I’d stumbled onto the set of The League of Extraordinary Gentlemen and was looking at Captain Nemo’s submarine. It was massive, though I didn’t spot Sean Connery. Designed for underwater sightseeing excursions, Atlantis XI has a regular cabin pressure, so if your ears start popping you’d better get to a doctor – nothing to

“ As we soared over Seven Mile Beach, I didn’t think about Cornwall. No, sir, not even once. Although I did still fancy a pasty. You can take the Cornishman out of Cornwall… ”

do with the submarine. And great visibility thanks to more portholes than a thing with lots of portholes. (Do you mean a ship? Are you sure about this? – Ed.) And the final standout activity? I’ve saved the best till last. A helicopter tour over Stingray City and Seven Mile Beach. We dived. We swooped. We blared the Ride of the Valkyries out of speakers mounted on the whirlybird’s roof. (OK, I made the last bit up.) But it was amazing. And as we soared along over Seven Mile Beach, I didn’t think about Cornwall. No, sir, not even once. Although, I did still fancy a pasty. Well, you can take the Cornishman out of Cornwall… H Three-bed, three-bath Tower Villa at the Caribbean, $550 per villa per night, caribclub. com; two-tank boat dive $110 per person, divetech. com; Atlantis XI submarine trip, $99 per person,; Stingray City and Seven Mile Beach helicopter tour, $120 per person; for more information, contact Grand Cayman Islands, 020 7491 7771;

Abercrombie & Kent has been perfecting the art of tailor-made travel for nearly 50 years. For the ultimate in service and experience please call

0 8 45 61 8 2158 or visit us in Harrods

no phones, no emails, no board meetings. Just seamless service and the pressing matter of relaxation.





A River Runs Through It Home to hedge funds, oil dynasties, and 1980s soap operas, Dallas is as good a spot as any to do business. But while you’re there, free yourself in the Big Country, says Lee Mannion “everytHing’s Bigger in texas,” confirmed the sexy older woman opposite me at the dinner table at Cibolo Creek Ranch, down near the Mexican border in southwest Texas. I’d been remarking on the size of the wasps buzzing haphazardly around like drunks down by the pool, fully four times bigger than the runts back in England. Lisa had flown in with her oilman husband, who had piloted their private jet. If everything was truly bigger in Texas, his would be a lot bigger than mine... salary, that is. I was David to his Goliath – and she knew it. “Anyhow, we’re off to toast marshmallows round the fire pit. Nice meeting y’all,” she drawled, before vanishing with a swish of chocolatechestnut hair. ‘Big’ is a given in Texas. On the drive here, with a gigantic clear blue sky overhead and crystal visibility, our guide pointed out a mountain range he recognised that was some 100 miles distant. The only US state bigger than Texas is Alaska, so if you’re thinking of visiting, it’s a good idea to confine yourself to one area. Dallas has the hedge funds, Houston has the nightlife and Galveston has the waves, but if it’s big country you’re after, the Big Bend National Park and surrounding area will fulfil all your cowboy fantasies. Big Bend gets its name from the kink in the Rio Grande, when the river changes direction from south to north. Because the river forms the border between the US and Mexico, there is something gloriously illicit about rafting between the two countries, and Lajitas is a good spot to get on the water. Blue herons peeled off in front of our boat and kingfishers darted around as we started out. The scenery is initially arid and calm until the sunlight is narrowed to a shaft by two massive walls of rock that reared up ahead. And spectacular Santa Elena Canyon dwarfs the big river, squeezing it fairly narrow until it pops out the other end,

seven miles ahead. Sunshine penetrates the 1,500ft-high walls only in patches, making the canyon deliciously cool compared to the punch of heat in the open desert. It is, therefore, a fine spot for lunch, which appeared magically out of the icebox that our rower Ernesto had used for a seat in the boat. We set up on the south bank so, geographically, lunch was actually taken in Mexico. Further refreshment was had after clambering through a crack in the stone walls called Fern Canyon. A thunderstorm the previous night had filled up giant rock pools with cool, refreshing rainwater, into which we slipped to wash off the sweat the heat had produced. As well as having a dedicated spit of land off the road from which to slide the boat in, the nearby Lajitas Resort makes for a more than comfortable bolthole in which to clean up on your return. Laid out like the shoot-out setting from a Western movie, thirst-quenching margaritas become dangerously more-ish at the Thirsty Goat Saloon, while the beds are – yep, you guessed it – big. Big enough for a foursome, should you feel so inclined. While you’re at Lajitas, you’d be missing out if you didn’t spend some time with Kim ‘OK’ Estes at the resort’s equestrian centre. He’s a bit like Curly, Jack Palance’s character in City Slickers, but more smiley than surly and seems as much a part of the landscape here as the cacti. Exuding a ▶

“ The river is the border

between Mexico and the US; there is something gloriously illicit about rafting between the two countries; Lajitas is a good spot to get on the water ” 69




“ The ranch’s Humvees

had tours in Afghanistan before they were shipped home and kitted out with chairs for the guests, including two that are fixed to the bonnet ”

▶ tough confidence, ‘OK’ specialises in ‘cutting’ horses, training them to change direction as easily as Ronaldo outmanoeuvring a defender. This makes the horse invaluable for rounding up cattle and the resort will even organise a cattle drive if you’ve got the numbers – and the readies. He’s gold at the Lajitas shooting range too, filling six shooters with bullets and cracking rifles as easily as breathing. ‘OK’ is also



as quick with a quip as he is with a gun. “Goddamn, boy, you killed the desert!” he exclaimed as yet another cloud of dust came off the ground, the metal target untouched by my bullet. You can’t play at cowboy without actually getting on a horse and riding out into the plains and, naturally, the resort can take care of that too. If the cowboy caper gets old, Cibolo Creek Ranch, 70 miles down the road

Visit or call 020 7367 0963 for further information on Texas. Continental Airlines offers flights to Austin from London Heathrow from £603; 0845 60 767 60; Stay at Lajitas Golf Resort & Spa from £96;

PHoToGRAPH (Previous page) by Jeff Foott/Getty; (Top) by Wyman Meinzer

A BIG DEAL: (previous page) Santa Elena Canyon at sunrise and its reflection in Rio Grande River; (this page, clockwise from top) buffalo on the range at Cibolo Creek Ranch; Harley drive through the valley – a perfectly American way to enjoy the scenery; Balanced Rock at sunrise; a dramatic vista of Big Bend National Park

from Lajitas, can offer some luxurious distraction. Those not content to lounge around the pool or hook a couple of fish out of the adjacent lake can always get on their quad bike... or Humvee. Basically, an indestructible crate with an engine, the ranch’s Humvees had tours in Afghanistan before they were shipped home and kitted out with chairs for the guests, including two that are fixed to the bonnet, for God’s sake. For the thrill-seeker, these are the best seats in the house as you will be bucked and swayed by the rocks and potholes on the estate’s trails, which offer some retinawidening views into Mexico after some near vertical ascents. It also means that you’ll be the first to spot buffalo or, if you really luck out, a mountain lion. Cibolo appears as a fort at first; when Milton Faver decided he wanted to live out here in 1857, he had no choice but to build one owing to the Apaches that were marauding around at the time. To prove they haven’t made this up for the tourists, the in-house museum displays plenty of flinty arrowheads that have been found on the grounds. The ranch conforms to Texas proportions as it’s a monster: 30,000 acres that are home to camels and oryx as well as cattle and the aforementioned buffalo. Two of the three places to stay on the estate are 16 miles apart. With all this space, the rooms are predictably massive and luxurious, while the terracotta tiles underfoot and white walls will help keep you cool against the heat even with the a/c switched off. Down in Big Bend country, bigger is most definitely better. H

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overseas investment les geTs, near geneva


Spend the Kids’ Inheritance Wisely… … and give them a tax-efficient apartment in up-and-coming Les Gets, developed by the muchacclaimed, award-winning Ferme de Montagne, a byword for luxury. By eugene costello for those in the know, Ferme de Montagne in Les Gets is the Ritz of ski resort chalets. The last word in luxury and pampering, food critic Tom Parker Bowles said of his stay here “it’s dinner where the real fireworks occur”. As well as Michelinstandard food on offer every night, his view will also have been shaped by the ludicrously comfortable and luxurious interior. Now you can own your own private corner of this oasis of perfect pampering and easy luxury… Due for completion next winter, the apartments at Les Domaines, ranging from studios, two-beds up to a fourbed penthouse, are just an hour from Geneva Airport – SWISS flies from London City so you can leave your desk at lunchtime and be on the slopes around the time everyone else is hitting the Frog & Parrot. They really are the final word in luxury. Every last detail is thought of. For example, the underground garages have been designed so that you can drive a 4x4 or people-carrier in with a ski-box on top that won’t scrape the ceiling; and it’s wide enough for the kids to open the doors without chipping the paintwork. Each apartment effortlessly breathes cutting-edge cool, from open fires, concealed

kitchens, state-of-the-art entertainment systems and a private hot-tub on the terrace. A private 500-bottle cellar within the main stone-vaulted cellar and tasting room allows you to store wine safely, and in the double-height communal areas will be a gastronomic restaurant, a brasserie, a bar with leather sofas, a stone-vaulted winetasting room and a private dining room on the mezzanine overlooking the lobby. Add to this a private cinema (great for the kids while the adults enjoy a leisurely dinner), a spa, an indoor pool, a sauna, steam room and various treatment rooms for massage, a yoga and pilates studio and a gym, and you will want for nothing. This ski-in, ski-out complex is part of the Portes du Soleil, with 650km of wonderful skiing on the doorstep; after skiing, the lifts whisk you from the underground heated boot-and-equipment room up to your apartment, where you can leave your clothes in the drying cupboard in the entrance hall. Your own private storage room means your belongings are secure when you’re not there. Personal photos and paintings can be stored and put away exactly where they were – it will be as though you never left. And

happy valley: The view from the home piste back down to Ferme de Montagne (detail inset)

with generous tax breaks from the French government for renting your apartment when you are not there, this fabulous offer makes an ideal investment vehicle too. H Studios to four-bedroom penthouses from £475k-£2.1m. For more information, please contact Christine Petersen at Sotheby’s (christine.petersen@; 020 7495 9580); for Ferme de Montagne, please visit



HedGe HUBs aTHenaeUM


They All Go Hand in Hand... Parklife! joins the stars who flock to London’s Athenaeum Hotel. Even cheese-making Alex James from Blur has a bit of his heart devoted to this boutique hideaway on Piccadilly Martin deeson

If I wanted to reproduce here a list of the stars who have stayed, drank and even edited movies in the Athenaeum Hotel on Piccadilly and its associated apartments, the list would be longer than a Halle Berry Oscar-acceptance speech. From Lauren Bacall to Renée Zellweger, all the big names of Hollywood, Pinewood and er… Blur, have happily made the Athenaeum their own. One of only a handful of family-owned hotels in the West End, the Athenaeum occupies possibly the premium hotel spot in London – at the head of Piccadilly with views across Green Park. But for stars and slebs it has one even bigger advantage – it is not one of those regularly staked out by the paparazzi, as at the grandes dames of Park Lane or The Strand. “The Athenaeum is friendly, not posh and stuffy,” the hotel says on its website and that nails the appeal right there. Of course, there is nothing wrong with the institutions of the London hotel scene – the Ritz, the Dorchester and Claridge’s – but sometimes they can feel a little intimidating, as if the hotel itself is looking down its nose at you. The Athenaeum is an altogether more intimate environment, from the whisky bar (which carries 270 varieties of the amber nectar and now boats a whisky-and-cheese tasting menu created by the aforementioned ex-Blurite turned cheese maker, Alex James, working in symphony with the hotel’s head chef, David Marshall, and resident whisky sommelier, Angelo Gobbi) to the rooms and apartments, which are modern and homely in a way that invites extended stays. In fact, the Athenaeum’s apartments, which have their own street doorway a few yards into Mayfair and a discreet entrance into the hotel so residents can share the five-star facilities, are frequently rented for a year or more by visitors. Steven Spielberg even installed an edit suite in the adjoining apartment to his own and edited ET, Close Encounters of the Third Kind and Indiana Jones right here. From Michael Douglas to Sandra Bullock, stars and VIPs still use the

green, green park: (clockwise, from top) The athenaeum’s enviable whisky collection; despite its central location, it even manages to pack in a lawn; no ordinary bathroom – you’ll never have to miss Eastenders

“ With views across Green Park, but for stars it has one even bigger advantage – it is not regularly staked out by the paparazzi, as at the grandes dames of Park Lane or The Strand ”

Athenaeum as their home from home when staying in town. For the visiting hedgie, or client – whether here for a weekend, a year, or a day (the meeting facilities are famously good), the Athenaeum offers a superior alternative to other five-star monoliths. To quote Blur, The Athenaeum “gives me a sense of enormous wellbeing”. 116 Piccadilly, W1J;



Daily Express

Spain’s best kept secret PGA Catalunya Resort is tucked amongst the beauty of mature pines, majestic mountain tops and two world-class golf courses ranked No. 2 in Spain, No. 3 in Europe and No. 88 in the world. All this just minutes from Girona, a quick drive from Barcelona and an hour from the Pyrenees. With the infrastructure and amenities in place, the estate is poised to become Spain´s premier residential resort community. The residential collection includes golf-front plots starting at 380,000, single-family turnkey villas from 950,000, a private enclave of townhomes from 625,000 and apartments starting at 325,000. Contact the Real Estate Sales Office today to receive further information. *Offer valid only on La Vinya and La Selva plots purchased by September 30, 2011. Prices subject to change.

+34 972 472 957

A Sterling Offer for UK Buyers Guaranteed exchange rate of î ¤1.25 on all plot purchases through September 30, 2011*

Be Different

Be Inspired


property St john’S Wood


Seeing the Wood from the Trees... St John’s Wood, to be exact. If you have £16m to spend on a house, it’s never going to be a stinker – but we’ve found one gem in North London that’s difficult to beat

31, Hamilton terrace represents a rare opportunity to purchase a doublefronted detached freehold residence on the west side of St John’s Wood. Hamilton Terrace is an impressive treelined boulevard widely regarded as one of the finest residential addresses not only in St John’s Wood but throughout the whole of central London. With an asking price of £15.75m, no expense has been spared on this outstanding 6,900 sq ft property. The house provides versatile family accommodation arranged over four floors featuring exceptional living space, a stunning bespoke Macassar ebony kitchen/breakfast room, a private cinema, and a beautifully-landscaped 110ft southwest-facing rear garden. The indulgent principal bedroom suite occupies the entire first floor – including a sitting area, two dressing rooms, bathroom,



sauna and terrace. There are four further double bedrooms – all with en-suites, naturally – and a staff bedroom with en-suite too. Other highlights include a double-length drawing room with terrace; a dining room with adjoining servery; a library; and an integral garage alongside the secure off-street parking.

“ Hamilton Terrace is

widely regarded as one of the finest residential addresses not only St John’s Wood but throughout the whole of central London ”

Furthermore, there’s plenty of potential to add value to the property, as planning consent has also been obtained to create a full lower-ground floor leisure and swimming pool complex in excess of 3,000 sq ft (further plans upon request). The property benefits from excellent transport links including Maida Vale and St John’s Wood Tube stations as well as the Heathrow Express at Paddington Station with an average journey time of 15 minutes to the airport. The extensive shops, boutiques and restaurants of Little Venice and St John’s Wood are close by, while the beautiful open spaces of Primrose Hill and Regent’s Park are also within a short walk. It’s rare to find a property in London that ticks every box – but 31 Hamilton Terrace seems to manage it. H 020 7724 4724;


LUXURY WATERFRONT LIVING This is your opportunity to be a part of the Mediterranean’s most exclusive waterfront development. Just a stroll away from the heart of Limassol, the most cosmopolitan and vibrant city in Cyprus, Limassol Marina offers an enticing mix of waterfront homes, boutiques, restaurants and shops, to create a lifestyle uniquely shaped by ‘living on the sea’. The luxurious Peninsula Villas have just been released featuring their own private berth or direct access to the beach. This follows the highly successful launch of Nereids Residences; apartments and penthouses set in a natural landscape with stunning sea and marina views and a communal swimming pool. Villas with private berths from €1,650,000 Apartments from €420,000

Developed by Limassol Marina Ltd, managed by Cybarco Ltd and marina operated by Camper & Nicholsons Marinas.

UK 020 8371 9700 International +357 25 820511





Catalunya Dreaming The brains behind the famous Quinta do Lago golf resort in Portugal have looked east and built a heaven for golfers and their families alike close to the historic city of Girona in Spain

PGA CAtAlunyA ResoRt is one of Spain’s most prestigious golf and real estate projects. Spread over 300 hectares of countryside, it comprises two worldclass golf courses (the Tour and Stadium courses), superb leisure facilities and a select number of villa plots, stylish modern townhouses and apartments for sale. A consciously low-density development, each property is set within an average of 1.4 hectares enjoying views over the manicured fairways, mature forests and beyond to the Pyrenees. Owned and developed by acclaimed Irish entrepreneur Denis O’Brien of Quinta do Lago in Portugal, PGA Catalunya Resort is one of the finest golfing real estates in Europe. While PGA Catalunya Resort will set golfers’ hearts racing, it also offers a wealth of pursuits to appeal to young professionals and families alike. At the epicentre of some of Spain’s most spectacular scenery, it’s 45 minutes from Barcelona, 25 minutes from the Costa Brava, 15 minutes from Girona and 1.5 hours from the Pyrenees. It has an affiliate relationship with idyllic sea-fronting hotel Santa Marta on the Costa Brava to offer owners at PGA Catalunya Resort access to Santa Marta’s private beach, waterside restaurant, swimming pool, tennis courts and superb boutique spa. In the winter, the ski slopes of La Molina-Masella are an hour’s drive away. Those seeking a culture hit and a spot of designer shopping can find themselves on Barcelona’s renowned ‘Passeig de Gracia’ in under an hour of leaving their home at PGA. It also makes sense to indulge in some authentic Spanish tapas, wander the historic city of Girona and soak up the atmosphere of this vibrant gem. Purchasers can choose from modernist homes designed by an impressive trio of architects: De Blacam & Meagher, Lagula & Damian and Francisco Ribas. Each offers a distinctive architectural style created to complement the natural

“ It makes sense to

indulge in some authentic Spanish tapas, wander the beautiful and historic walled city of Girona and soak up the atmosphere of this vibrant gem ”

beauty of the surroundings, visionary contemporary design and the highest level of luxury. Investors can choose between villa plot purchase and self-build. H PGA Catalunya Resort project-managed selfbuild or turnkey properties: 1,049 sq m plots from €385,000, 250 sq m villa plots with turnkey villa from €950,000, three-bed 200 sq m semi-detached town-homes from €625,000, and two-bed 84 sq m apartments from €325,000.



A joint venture between Minerva plc & Northacre plc

CGI of Entrance Lobby

Photograph of Lancasters Show Apartment


77 new residences overlooking Hyde Park. 1 to 4 bedroom apartments and penthouses designed around the grandeur of the original architecture and interior features including high ceilings, ornate cornicing and marble fireplaces • Retained Grade II listed façade

• Luxurious gym, spa and pool

• 24 hour security and concierge service

• Private landscaped gardens

• Valet parking

• Southerly views over Hyde Park

CGI of Lancasters Exterior

Apartments available from £5,000,000 Ready for occupation June 2011

Sales Office +44(0)20 7402 8822



If You Pass Go, Collect £20m... When it comes to property development you may prefer the concept to the reality. Fortunately, we’ve found one company that can take care of all the hassle for you

It’s no wonder that there is such a strong demand for London’s prime property from high net worth international investors: prices rose by, on average, 8% in 2010 with some properties seeing values growing by up to 20%. There is general consensus among the top estate agents that prices will continue to grow by 5-10% yearon-year for at least the next two years. So why is there such strong value growth? One reason is the lack of stock that these international investors actually want: genuinely prestigious properties that have been expertly developed and can also offer impressive rental yields. And therein lies the opportunity for a City entrepreneur who is willing to turn developer. But working in the Square Mile and developing in central London are not easy bedfellows – both involve long hours and a good degree of stress. “We take the long hours and strain of developing properties out of their hands,” says Dominic Parker of architecture and interior design firm Janine Stone. “With over 40 professionals in-house, we act as the finder, the architect and the interior designer of their property – and then we act as main contractor in renovating and delivering it – and sometimes even selling it for them.” The key to success is in finding “properties with potential” as Parker puts it: those that can be developed in such a way that they deliver the optimal uplift in per square foot value for the investment made. With architects and interior designers to



“ We take the long hours

and strain of developing properties out of their hands. With over 40 professionals, we act as the finder, the architect and the interior designer… ”

hand, Janine Stone’s acquisitions team knows which properties have this real potential. Says Parker: “We negotiate hard on all aspects of the project, from acquiring the property to engaging the subcontractors. As we often reduce our fees in lieu of a share of the profits when the property is sold, we want to achieve the best possible prices for the best possible property for our clients.” H Call 020 7627 5300;


Move On Up To The Waterfront Cyprus, with a perfect year-round climate, a low tax regime and reliable infrastructure, has always been a great place to do business. Now, Limassol Marina makes it irresistible...

Cyprus has long been recognised as a key investment destination on the global business map. Now Limassol Marina, an exceptional £350m waterfront development on the island, represents an unrivalled opportunity to invest in one of Europe’s most advantageous business hubs. Backed by the Cyprus government, the exceptional scheme will have 274 apartments and villas, all with views



“ All of the villas have

views over the calm, peaceful waters of the Mediterranean, waterfront restaurants and bars, fashionable shops and leisure facilities… ”

over the calm, peaceful waters of the Mediterranean, waterfront restaurants and bars, fashionable shops and leisure facilities. The marina, operated by Camper & Nicholsons International, will provide 650 berths for all types of vessels, from 8m sailing boats to 100m mega-yachts, a full range of nautical services will include dry docks, refuelling, crew facilities, yacht provisioning and 24-hour security.

ProPerty LimASSOL mARiNA

“Cyprus has always been traditionally a place of commerce and that continues in Limassol, with an international mix of companies benefitting from the low corporate tax rate of 10%,” says Michalis Hadjipanayiotou, CEO of Property Development at Cybarco Limited, a leading property developer in Cyprus and one of seven shareholder companies bringing Limassol Marina to fruition; it is also managing the project and is responsible for its sales. Investing in Cyprus and buying property on the island makes sound business sense – the island offers low taxation, high performance and impressive access to global investment markets including Russia, India and other EU countries. At just ten per cent, the corporation tax in Cyprus remains the lowest in the EU, while the network of Double Taxation Treaties (DTTs) signed by the country and the low income tax on company profits, ensure that Cypriot-registered companies have significantly lower tax leakage and a higher return on investments. There are now more than 230,000 registered companies in Cyprus from across the world – all attracted by the country’s highly educated, multi-lingual workforce, world-class business and telecoms services. Cyprus also has a strong legal framework based on English Common law, providing international companies with a familiar and well-understood system. It is also supported by a strong and stable banking system, which fared the global economic crisis well through its regulated and conservative approach, and includes more than 40 international and domestic banks. Occupying a strategic location at the crossroads between three continents, the island also enjoys business-friendly time zones that synchronise neatly with the other global business centres. It is possible to do business with the East in the morning, Europe throughout the day and the West in the afternoon. Official statistics show that international business structures in Cyprus are already generating more than €857m a year in total. Limassol Marina has just launched its waterfront Peninsula Villas where owners can drive up to one door and sail away from another, or enjoy direct access to the beach from the gardens of the villa. The

“ Cyprus has always

been a place of commerce especially Limassol, with an international mix of companies benefitting from a low corporate tax rate of ten per cent… ”

has captured the interest of yacht owners and also people who enjoy the buzz of a smart waterfront lifestyle,” says Jonathan Salsbury, Sales Manager of Cybarco’s London office. “As well as the favourable tax regime for investors and numerous benefits under Cypriot law, Cyprus has so much to offer – it is a year-round destination with 340 days of sunshine every year, a rich cultural heritage and an exceptionally high quality of life.” H

41 villas, with prices from £1.42m, have six different designs, with a range of two-, three- and four-bedroom properties, each with direct access to its own berth or the beach. Each villa looks out over the Med, with the emphasis on stylish space, both inside and out, with loggias, terraces, and family verandahs, plus swimming pools set in landscaped gardens. “Limassol Marina

Prices for the Peninsula Villas start at £1.42m. An exclusive selection of apartments and penthouses are also available at Nereids Residences. Set in a private, verdant landscape and arranged around a beautiful freeform swimming pool, they feature stunning sea and marina views and are priced from £375,000; For more info: +44 208 371 9700, email info@ or visit

SAFE HARBOUR: (clockwise, from top) one of the ultra-chic and contemporary apartments at the Nereids complex; the swimming pools and lawns at Nereids; the turquoise seas around the harbour at Limassol marina, where those with boats will find mooring one of the main advantages of living here



Market analysis

end Play

Percentage share of hedge fund assets by location of manager ■

Slice of the Action New York is king of the hedge funds. Perhaps that’s because it never sleeps. London is a credible second – and we get to kip more

55 50 45 40 35 30

New York



20 15 10 5 0 2000










11% San Francisco

3% Westport




New York Boston





Percentage share of largest 100 hedge funds assets by location of manager ■

Source: IFSL eStImateS




Hedge Magazine - Issue 17 - 'The Great Hedge Diaspora'