A PEEK INSIDE THE ULTRA-RICH’S INVESTMENT PORTFOLIOS

NEW YORK (MainStreet) РWealth brings access. Exclusive clubs, private dining, keycard entry. And while us working stiffs exchange stock tips in the buffet line at a Rotary meeting, the uber rich meet with government insiders, top-shelf investment managers and the academic elite. Tiger 21 is an example. With over 250 ultra high-net-worth members who hold more than $25 billion in their personal investment portfolios, this private investment network allows insiders to wine and dine with the best-thinkers in the world of finance – all for a $30,000 annual membership fee. After verifying your minimum qualifying net worth, as well as a background and credit check, of course.

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This is how the smart money invests.

Tiger 21 takes a quarterly survey of its membership, gauging each individual’s investment strategy to derive a composite allocation of the group. Each investor tells of the changes they intend to make in their personal portfolio during the next three months.

In the latest survey, the wealthy investors indicated a desire to do a little fine tuning in their cash and private equity holdings. Nearly half (46%) said they plan on increasing their liquid holdings and 44% intend on taking a larger stake in private equity.

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“Private Equity remains a favored asset class in many Members’ investment portfolios and comprises 22% of aggregate asset allocation exposures of our Member’s portfolio ‚Äì a record high for this asset class,” a Tiger 21 analysis says. “What may be more telling than any of the individual movements in the planned asset allocation mixis that movement is anticipated in all of the categories. The most significant decrease is expected to take place in Public Equities, where 24% of respondents are decreasing their exposure.”

The summary also notes that many of the exclusive investment network is looking to make little, if any changes, to their portfolio in other assets classes, including: currencies, fixed income, stocks, real estate, hedge funds, and commodities.

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While those that are repositioning their investments may be looking to add to their cash holdings and trim equities, more than one-quarter of the wealthy investors (26%) said their favorite place to invest capital during the next five years would be in real estate. Fewer chose private equity (16%) and energy investments (12%).

–Hal M. Bundrick is a Certified Financial Planner and contributor to MainStreet. Follow him on Twitter: @HalMBundrick