Fri, Jul 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Ultra rich embracing hedge funds and other alternative investments, 35% more in hedge funds now (compared to 2007)

Tuesday, November 09, 2010
Opalesque Industry Update - For the richest Americans, hedge funds are back.

Despite the challenges faced by hedge funds in recent years, a full 50% of households with a net worth of $25 million or more, not including primary residence (NIPR), own hedge funds in 2010, according to "The $25 Million Plus Investor," a new report released today by Spectrem Group (www.spectrem.com).

This represents a 43% increase in hedge-fund ownership from 2007, when just 35% of the wealthiest households invested in this alternative asset class. The mean hedge fund holding for this group is $4.6 million in 2010. "While hedge funds have gotten something of a black eye in recent years, the nation's wealthiest investors have not been scared off. In fact, substantially more of them invest in hedge funds today than back in 2007, prior to the depths of the financial crisis. With their exposure to private equity and venture capital also exceeding 2007 levels, it appears the richest Americans are not afraid to accept a little risk to help expand their portfolios," said George H. Walper, Jr., president of Spectrem Group.

More than half of households worth $25 million or more own private equity (56%) and venture capital (52%) in 2010 -- up from 39% and 37%, respectively, in 2007. Other alternatives this group holds in 2010 include private placements (49%), precious metals (44%) and commodities (38%).

Spectrem's report, "The $25 Million Plus Investor," is based on a survey of the financial-decision makers in 101 households with a net worth of $25 million or more conducted by mail and online in August 2010. The data have a margin of error of plus or minus 9.7 percentage points.

(press release)

Source

For full report contact: Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  4. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New

  5. SWFs - Abu Dhabi wealth fund says long-term investment gains fell[more]

    From Bloomberg.com: The Abu Dhabi Investment Authority, one of the world’s biggest sovereign wealth funds, said its long-term gains dropped in 2015. The fund’s 20-year annual rate of return slowed to 6.5 percent at the end of 2015, from 7.4 percent a year earlier, it said in its annual review. Over