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From Kirsten Bischoff, Opalesque New York:

The relationship between hedge funds and high net worth individuals (HNWI), has always been considered stable and fruitful, as this population formed much of the base for hedge fund assets. But things became rocky in 2008 when the liquidity needs of HNWI forced many to tap into their hedge fund investments for cash (even those investment where managers were returning positive performance), in what was dubbed the ATM affect of the financial crisis. Since then many managers have been wary of courting this population, fearful that they cannot be considered "sticky money". However, after the massive exodus of HNWI assets from hedge funds in 2008, this group expressed their commitment to hedge funds, by returning them to their portfolios as the markets recovered. In 2009 HNWI increased their hedge fund allocations by 3% (according to the 2010 World Wealth Report by Merrill Lynch Wealth Management and Capgemini Consulting Technology].

HNWI population in US concentrated This month, the firm released the standings of the Capgemini 2010 US Metro Wealth Index, announcing that the populations of HNWIs in the US have become extremely concentrated (the top 10 metro areas saw their HNWI populations surge by 17.5%), with New York hosting the largest population of HNWIs (667k individuals). However, the cities that c......................

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