The End of an Era: TIGER 21 Founder Declares Hedge Funds ‘Dead as a Doornail’ | CNBC


Debra Xu

Published On

May 8, 2024

Published In

Investments, Press Article, News

Our Members realized they could do better on average with more exposure to index funds … with more liquidity and less fees, and likely higher returns over the last decade.

Michael Sonnenfeldt, TIGER 21 Founder and Chairman

Over the past 16 years, TIGER 21’s data reveals a stark decrease in hedge fund allocations—from 12% to a mere 2%. In a recent CNBC article by Lee Ying Shan, TIGER 21 Founder and Chairman Michael Sonnenfeldt emphasized that hedge funds have not just declined in popularity but are “dead as a doornail,” with Members favoring alternatives that offer lower fees and comparable exposure, such as index funds or private equity investments. This investment evolution reflects broader preferences within TIGER 21, where private equity is currently the largest component of its Members’ portfolios at 29%, closely followed by real estate investments at 27%. Public equities and cash hold positions of 19% and 12% respectively. View the full asset allocation report here. 

Michael’s critique of hedge funds is grounded in their performance issues over the past decade, exacerbated by a low interest rate environment where high fixed fees became increasingly unattractive. Read the full article.

Photograph by Adam Jeffery | CNBC

About TIGER 21

TIGER 21 is an exclusive global community of ultra-high-net-worth entrepreneurs, investors, and executives.

Explore the TIGER 21 Member Experience
  • This field is for validation purposes and should be left unchanged.