Bermuda hedge fund manager West End Capital is to reap $583,200 in payroll rebates from the Canadian government because it is ramping up staffing in its Halifax branch, according to a Canadian news report.

Halifax newspaper the Chronicle-Herald said West End was promised the healthy rebate because it plans to augment its existing office of 17 with 50 more hires.

Patrick Boisvert, West End Capital?s chief financial officer, said the company set up a Halifax branch because of the city?s large pool of university graduates.

West End has had a Halifax office since January.

?Initially, we wanted a backup location. Should something happen in Bermuda, obviously with hurricanes, we need to be able to trade right away. Proximity is another thing ? Halifax is only two hours away (by air) and it is in the same time zone,? he told the Chronicle-Herald.

The payroll rebate will be paid out annually over three years once the jobs have been created, said Paul Doucet, spokesman for Nova Scotia Business Inc.

The company is seeking highly educated workers, at a master?s degree level, to provide information technology, accounting and insurance support to traders at West End Capital?s Hamilton headquarters, which has about 36 employees, Mr. Boisvert said.

No trading will be done in Halifax, he said.

New employees can expect starting salaries of about $60,000 Canadian annually ? a good deal for the company, which pays Bermuda workers in similar positions US$80,000.

West End?s biggest investment vehicle is Value Capital LP, a $570-million hedge fund backed by billionaire investor Warren Buffett. It has total assets of $1 billion.

Most of the firm?s clients are large institutional investors such as pension funds.

It has also this year invested in two reinsurance companies. It partnered with Bermuda reinsurer Montpelier Re earlier in the year to form Cayman Islands Rockridge Re with total capitalisation of $1 billion.

And in November, West End received a licence for its second reinsurance venture, Flagstone Re.

Plans are to capitalise the company with between $750 million and $1 billion. West End is the lead investor.

Flagstone, which is to be headed by West End principal David Brown, is one of ten major insurance and reinsurance start-ups currently being formed in Bermuda to take advantage of an expected rise in reinsurance rates.

Premium prices are going up as demand for policies increases after massive hurricane damage in the US this year, costing the industry as much as $80 billion.