Thu, Oct 30, 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. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some

  3. North America - FATCA leads 75% of U.S. expats to consider dropping citizenship[more]

    From International-adviser.com: Nearly three quarters of American expats are considering the renouncement of their citizenship following July’s introduction of the “absurd” Foreign Account Tax Compliance Act (FATCA). The findings, which were revealed in a survey by deVere, come alongside the news th

  4. Hedge funds fell 1.18% in September on Fed tightening and ECB loosening[more]

    Komfie Manalo, Opalesque Asia: Hedge funds fell 1.18% in September on Fed tightening and loosening of the European Central Bank’s policy on equity markets, according to the Barclay Hedge Fund Index co

  5. New app allows asset managers easy interaction with portfolios, securities, holdings, transaction details[more]

    Komfie Manalo, Opalesque Asia: Global financial services software company SS&C Technologies Holdings has launched Explorer, a powerful data visualization and analysis tool that turns critical investment data into meaningful information. Explore