TIGER 21's Q2 2017 Asset Allocation Report Shows Record Interest in Real Estate and New Low for Hedge Funds

TIGER 21 recently announced the results of its Second Quarter 2017 Asset Allocation Report, showing an increase in Members’ allocation to Real Estate and Private Equity, with corresponding declines in allocations to Hedge Funds and Public Equities. Key takeaways include:

  • Members’ exposure to hedge funds has been on a steady decline in recent years but, at 4% this quarter, dropped to its lowest level since TIGER 21 began collecting this data in 2007.
  • Real Estate investments now make up 33% of TIGER 21 Members’ personal investible assets — an all-time high. What are the factors driving this upward trend? Among them: 
    • Historically low interest rates
    • Risk tolerance, driven by Members’ experience and expertise in managing real estate portfolios
    • Real Estate is one of the last inefficient markets
    • Anticipated regulatory rollback from the current administration
    • Public equity allocations also declined slightly in Q2 2017, now comprising 20% of Members’ portfolios. While still a sizeable percentage of their overall assets, this is the lowest reading seen since Q2 2010.
    • At 21% of TIGER 21 Members’ allocation, Private Equity has increased by one percentage point, edging back up from the decline seen in the past few quarters.

Read the full report here.

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