Thu, Aug 21, 2014
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. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added