XTX founder to shut down fund at heart of UK tax dispute
Alex Gerko, the billionaire founder of quantitative trading firm XTX Markets, is taking steps to wind up the investment partnership at the centre of a long-running UK tax dispute, according to a report by Bloomberg.
Billionaire Alex Gerko, founder of XTX Markets, is voluntarily shutting down the investment partnership HFFX, which was at the center of a UK tax dispute, according to Bloomberg. The decision follows the UK Supreme Court's ruling against Gerko and HFFX in late 2022, resulting in a tax liability of £22.5m ($30.6m) for Gerko and other traders involved.
The Supreme Court's decision came in one of two major City tax disputes decided by the UK's highest court this summer. Gerko, who founded XTX after leaving hedge fund GSA Capital Partners in 2015, has been criticized for the tax treatment as significant double taxation on income earned during his early career. Despite this, Gerko has emphasized that the sums involved are modest compared to the billions of pounds in tax he has paid throughout his career.
XTX, now a leading electronic market-maker, handles over $250bn in daily trading volume and paid $6bn in dividends to a Gerko-controlled holding company since 2020.
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