What the title says - what are the best long only firms in low or lower cost states like FL, TX and TN? It seems as though a lot of pods have moved but it’s hard to figure out which LO shops are based in or moved HQ to low/no tax states. And as a follow up, do these firms pay similarly to NY/Boston/Cali, etc?
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Based on the WSO Dataset, the conversation around long-only (LO) firms and funds often highlights the strategic advantage of being located in low or no-tax states such as Florida (FL), Texas (TX), and Tennessee (TN). These states offer a compelling mix of high compensation, low taxes, low cost of living (COL), clean air, and generally easier hours compared to traditional financial hubs like New York, Boston, or California. This combination is particularly attractive for professionals looking to maximize their take-home pay while enjoying a balanced lifestyle.
Regarding the best LO firms in these states, the specific names of firms that have relocated or established headquarters in these lower-cost states were not directly mentioned in the context. However, it's inferred that the movement of pods (or teams) and firms to these areas is a growing trend, driven by the benefits mentioned above.
As for compensation, the context suggests that individuals working in these locations can indeed achieve high compensation levels. For example, the CEO of a long-only shop in a Southwestern city with over a billion in assets under management (AUM) is noted for printing seven figures in annual compensation before performance income. This indicates that, despite being outside the traditional financial centers, professionals in these firms can expect competitive, if not superior, compensation packages due to the lower cost of living and tax advantages.
The follow-up question about whether these firms pay similarly to their counterparts in New York, Boston, or California is partially addressed by the example of the CEO's compensation. It suggests that while base salaries might be on par, the overall financial benefit, including take-home pay and quality of life, could be significantly better in low or no-tax states due to the factors mentioned above.
In summary, while specific names of top LO firms in FL, TX, and TN were not provided, the trend of moving to or establishing in these states is clear, driven by economic and lifestyle benefits. Professionals considering a move can expect competitive compensation, enhanced by the lower cost of living and tax advantages, making these locations increasingly attractive for financial industry professionals.
Sources: Where is the compensation in banking? Is it worth taking a pay cut for the long-term prospects?, What are the top restructuring/distress debt advisory teams on the street for 2020 Summer Analyst recruiting?, Can someone make a LO AM tier list?, Which cities do you think provide the most opportunities?, Texas is America's Top State for Business
Some I can think of are T Rowe in Baltimore, American Century in Kansas City, Artisan Partners in Milwaukee, Janus in Denver, Principal Financial in Iowa, Wasatch in Salt Lake City, Diamond Hill in Columbus Ohio, Thornburg in New Mexico, Allspring, and tons of small boutiques managing from a couple hundred million to a few billion spread around the country. If Chicago is low COL, many more options. For whatever reason seems to be alot more long-only asset management in Midwest than the South. Not as much down there even in Florida despite the headlines of jobs moving, seems to be more back office stuff. Doing long-only in Florida seems like the dream but not much there that I know of.
Any thoughts on Allspring of Wasatch? Are those stable / good seats?
Know someone at Allspring, was formerly Wells Fargo's Asset Management arm and they sold it to PE which has been pretty hands off and focused on growing assets vs. cutting costs. Stable firm and a good seat. Like anything depends on team you work with a bit.
Know of Wasatch but don't have much more than you could find on the internet etc.
There is enough going on in Florida that sell-side research analysts started doing their marketing trip there - I work with all the bulge bracket brokers in my research and I see quite often their analysts doing marketing trips in Miami - with a caveat that their meetings are more with hedge funds. Long-only in Florida is as the previous post said, mostly back office support or marketing.
A better bet for you would be to look for a shop that has a hybrid/work remote culture. Several analysts and PMs at my shop do fly into NY when they have in-person meetings but otherwise are remote from out of state.
You can structure your case by being on the ground/closer to the companies you will cover. This is especially true for Texas if you have interest in the oil & gas sector.
Most of the firms who will allow this structure will tend to be smaller/boutique - where pay will either be negotiated on a case by case basis or have a national range rather than regional range.
If you are interested in more of a sales/marketing role, this is much easier. Regional offices of Long-only shops are more focused on client service than investments.
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