Connecticut out to poach NY's hedge-funders

Hey, Connecticut, back off!

Nutmeg State officials are dramatically stepping up their efforts to poach New York businesses -- wooing hedge-fund honchos to relocate by promising an "intimate" meeting with Connecticut Gov. Jodi Rell at a swanky steakhouse in Darien, according to a letter obtained by The Post.

Rell wrote to Timothy Selby, president of the New York Hedge Fund Roundtable, last Friday warning him that a proposed $50 million tax on certain hedge-fund managers is still alive in Albany -- and that's a great reason to move their businesses and jobs to her side of the border.

"I am personally inviting you and a few of your colleagues to meet with me," Rell wrote, adding, "We have much to discuss!"

"The meeting will be intimate, direct and private," she confided.

The powwow is set for Aug. 2 at The Water's Edge at Giovanni's in Darien.

Rell called it "a lovely place where we can talk further about Connecticut's advantages and the needs of your industry."

The restaurant features a mouth-watering menu of chateaubriand, special double porterhouse and even a "New York cut T-bone," along with seafood and Italian delights. Fine wine and top-shelf liquor are also available.

Last month, Gov. Paterson and legislative leaders endorsed a plan to begin taxing the so-called "carry" -- a performance incentive for generating profits -- of hedge-fund managers who work in New York but live in Connecticut and other states.

That could subject the carry -- a substantial portion of the managers' remuneration -- to New York's tax rate of up to 7.85 percent. New York currently doesn't tax that money for those hedge-fund honchos who live out of state. Mayor Bloomberg opposed the planned tax.

Selby welcomed Rell's overture.

"I'm encouraged that there is a politician who would have such an appreciation for this sector of the financial-services industry," he told The Post.

He noted that hedge funds could easily relocate. "This is an industry that can work from a laptop anywhere in the world," he said.

Last month, Rell began her cross-the-border pitch to big New York funds such as J.P. Morgan Asset Management, Angelo, Gordon & Co. and Paulson & Co.

"I want you to know . . . that my invitation to move your business here is not only still open -- it is in earnest," Rell, a Republican, wrote last week.

Selby said he's "not sure" if he'll accept the invite but it's "under consideration."

However, he blasted the tax and noted -- in an obvious dig at Paterson -- "I only wish we had a counterpart of hers in New York."

Paterson tried to distance himself from the proposed tax earlier this month, saying he supported the out-of-state tax only "because we couldn't get the Legislature to do the other revenue raises we thought were more constructive."

Selby said Paterson "fell short of saying they have to pull it" from the Legislative hopper.