ExodusPoint Capital Management and Millennium Management have established subsidiaries on the island, according to local records. That could help portfolio managers at the firms relocate to Puerto Rico to obtain huge tax breaks -- an increasingly popular option now that the pandemic has made working remotely mainstream.

Michael Gelband’s ExodusPoint created a money-management unit on theisland on behalf of co-founder Hyung Soon Lee, who moved there last year,and other investment talent in the region. Izzy Englander’s Millennium setup its own Puerto Rico arm weeks after Biden’s election.

The existence of the subsidiaries, which hasn’t been reported previously, holds greater significance now that Biden has proposed a series of tax increases on top earners. While some Wall Street denizens have been moving to locales with no state income taxes, such as Florida, those who venture toPuerto Rico may be able to avoid federal levies as well. […]