Connecticut is home to many top-tier hedge funds, the likes of SAC Capital, Tudor Investment, Bridgewater Associates, Paloma Partners and AQR Capital Management. But while the industry has returned to the good times in many ways, the story is different when it comes to state economy.

IHS Global Insight recently predicted that Connecticut would finish last among the states in job growth over the next five years. In addition, rumors abound that Swiss banking giant UBS will give up on its Stamford headquarters and decamp for Manhattan over the next few years. And just recently, there's been mounting concerns by hedge funds over state income taxes.

The AP notes that some executives are concerned and suggesting that "the industry could easily leave the state if taxes get too high."  The industry has long recently developed the view that it is being given short shrift in state economic matters. Gov. Daniel Malloy has been careful to reach out to hedge funds-and other industries-as part of his efforts to create more jobs. He intends to grant them an audience. He'll have to work hard to convince the industry that he's got their back. Recall that former governor Jodi Rell actively campaigned for more hedge funds to leave New York and set up shop in the nutmeg state. She was seen as a friend.

  For more:
- here's the AP article
- here's an article from the Greenwich Times

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