TIGER 21 RELEASES ASSET ALLOCATION REPORT
TIGER 21 Releases Asset Allocation ReportMember survey of peer-to-peer learning group shows portfolios have not returned to the allocationsseen in 2008, and certain shifts may be long termNew York, February 28, 2011 ‚Äì TIGER 21, the premier learning group for high net worth investors,released its Asset Allocation Report, providing a snapshot of how America’s affluent investors positiontheir portfolios for wealth preservation. Based on a survey of its membership, the current report representsinvestment exposure as of the fourth quarter of 2010.The report shows that while allocation to some categories has been restored to pre-downturn levels, certainshifts in Member asset allocation may be more long term, reflecting a continued concern of the overallhealth of the world economy.Among some of the report’s highlights:- Member exposure to public equity at 21% remains low compared with historic standards in the 30-35% range. Towards the end of 2008 Members’ public equity exposure was at 31%. “While the markets have certainly come a long way from the doldrums of the recession, members remain wary about whether we are in the clear or there will be more bad news,” explained Michael Sonnenfeldt, chairman and founder of TIGER 21.- Holdings in cash and cash equivalents are still at historically high levels. From 2008 to 2009 Memberallocation increased by three percentage points in this category and it remains high at 14%. “While highnet worth investors traditionally had 5-10% in cash to weather a downturn through the period it took torecover, TIGER 21 Members have been registering levels of cash in the low teens for a few years and inthe mid-teens for the last two years indicating deep concerns about the recovery and not wanting to getcaught with too little cash if there is another downturn,” according to Sonnenfeldt.- “Our prior surveys indicated that Members were living on approximately 3% of assets when their totalsources of income were passive investment returns and a 12% cash allocation was a reserve of fouryears of expenses. Now with members tightening their belts, and with living expenses suggested at justover 2% of assets, a 14 % cash allocation is really a reserve of more than five years of expenses, which isstill at an historic high,” Sonnenfeldt explained.- For TIGER 21 Members real estate at 23% and private equity investments at 9% combine for nearlya third of members’ portfolios. “Good advice for any investor, is to stick with what you know, andTIGER 21 members take that to heart. A large proportion of TIGER 21 Members have expertise in thesetwo areas and they know that superior returns can be earned when investing in sectors that they areknowledgeable about,” said Sonnenfeldt.- Member allocation to hedge funds, which had seen a four percentage point increase between 2008and 2009, remained steady over the past year at 9%. “Hedge funds have regained some of their pre-2008 luster, returning to almost 10% of portfolios. Historically they had been in the 10-12% range in the last half-dozen years but fell dramatically in the 2008 downturn from losses sustained. This wasamplified by liquidations as Members were seeking to limit risk and build cash. Some Members maynow perceive additional opportunities for alternative investments to outperform the public markets,”according to Sonnenfeldt.”The overall report shows that we have a prudent membership that does not make drastic changes to theirholdings, rather they make informed decisions that best position their portfolios for the long haul,” saidSonnenfeldt. “However, the near catastrophic events of a few years ago remain fresh to many Membersand may well be game-changers. This is just one of the many reasons that belonging to TIGER 21 isinvaluable to our Members.”TIGER 21, whose approximately 170 members nationally maintain investable assets of approximately$15 billion, collected member data measuring aggregate asset allocation exposures based upon members’Portfolio Defense presentations. The data is collected over the course of the year and presented in a year-over-year format.TIGER 21 includes a cross-section of serial entrepreneurs, Wall Street professionals, money managersand corporate executives who meet monthly in small group settings to share investment ideas andpersonal experiences. Groups conduct regular Portfolio Defenses ‚Ñ¢ whereby members share with oneanother their investment choices ‚Äì because we believe that no one person is as smart as the “collectiveintelligence” ‚Ñ¢ of the group. Members also tap into a secure online forum where they can pose questionsand obtain information from other members on investments and lifestyle issues ‚Äì including real-timeexchange in response to market gyrations and other events.Please follow this link for access to the full report:http://image.exct.net/lib/fef412727d6c07/m/1/TIGER+21+Asset+Allocation+4Q2010.pdfAbout TIGER 21TIGER 21 is the nation’s premier peer-to-peer learning group for high net worth investors. Building onshared collective intelligence, TIGER 21 members seek to enhance investment returns while limiting theirinvestment risks to acceptable levels. There are currently sixteen TIGER 21 learning groups, representingmore than 160 investors, with investable assets over $10 billion. Founded in New York, TIGER 21 now hasinvestor groups in New York, California, Florida and Texas. For more, visit http://tiger21.com.
