FFT: Launch HF in London or NYC?

Is london really a better place to start up a hedge fund?

Gary Vaughan-Smith and Alex Da Costa at SilverStreet Capital seem to think so. They just launched their HF in london...

However, one should keep in mind that SilverStreet is a fund of funds. In a sense fund of funds can be managed from anywhere with an internet connection, no? It seems like common sense that activist investing funds (M&A, restructurings, bankruptcy purchases, direct involvement in the board's decisions, LBOs, etc.) would prefer to stay close to their investments (and depending on the investments, this could imply that NYC or at least the US would be the best location). However...M&As are getting more international. In fact, i hear that the most common M&As these days are foreign firms grabbing US firms...

So...London or NYC?...who knows. i'll have to ponder this one a bit more...