Hedge Funds Facing Biden Tax Threat Grab Puerto Rico Toehold (1)

With Democrats pushing for higher taxes on the richest Americans to fund President Joe Biden’s infrastructure and climate initiatives, hedge fund managers are taking refuge in Puerto Rico.

ExodusPoint Capital Management and Millennium Managementhave established subsidiaries on the island, according to local records. That could help portfolio managers at the firms relocate to Puerto Rico to obtain huge tax breaks -- an increasingly popular option now that the pandemic has made working remotely mainstream.

Michael Gelband’s ExodusPoint created a money-management unit on the island on behalf of co-founder Hyung Soon Lee, who moved there last year, and ...