Published On

June 5, 2014

Published In

Press Release

TIGER 21 Releases Latest Asset Allocation NumbersHigh Net Worth Investor Group shows uptick in real estate and private equity allocations for previoustwelve months, while cash and fixed income allotments decrease; Members maintain overall cautionaryapproach to investments with concerns for global economy still top of mind

New York, NY (May 2, 2012) ‚ÄìTIGER 21, the premier learning group for high net worth investors, releasedits latest Asset Allocation Report, providing a snapshot of how an important segment of North America’s affluentinvestors position their portfolios for wealth preservation in an uncertain economic environment. Based on a reviewof its Members’ portfolios, the current report represents investment exposure as of the first quarter of 2012.

While from quarter to quarter asset allocation changes in specific categories have been muted — in no category wasthere a more than 2 percentage point change from the previous quarter — a look at asset allocation changes over theprevious year shows a definite shift in positioning.

“While many TIGER 21 Members might feel the worst of the economic troubles are behind us, general consensus isthat we are in no way in the clear. Members continue to pursue a cautious approach to investing and are making verydeliberate moves with their portfolio, only after much research and discussion,” said Michael Sonnenfeldt, founderand chairman of TIGER 21. “Our Members remain committed to long-term wealth accumulation and preservation.They’ve come to rely upon Members in their own group as well as Members from other TIGER 21 groups aroundNorth America for honest feedback on individual investment decisions. “

Among some of the report’s highlights:

  • Cash – Members’ cash allocation was reduced two percentage points to 12% from the fourth quarter of 2011 tothe first quarter of 2012, and is now a full five percentage points from a high of 17% in the first quarter of 2011.This could be portrayed as signaling a cautious optimism in the economy. Yet, it is telling that even at 12%,Members’ allocation to cash is still above that of what most financial advisors generally recommend. TIGER 21Members like to keep at least a three or four year reserve in cash and cash equivalents.
  • Fixed Income ‚Äì Fixed income is down five percentage points to 15% from the first quarter of 2011 when itstood at 20%, and eight percentage points since the fourth quarter of 2009. The low yields on the bond marketand persistent trouble in the sovereign debt market could be contributing factors.
  • Public Equity ‚Äì Public equity allocation decreased two percentage points to 22% from first quarter 2011 tofirst quarter 2012 as Members remain cautious despite generally positive performance in the markets over thepast year. [Please note this percentage does do not differentiate between direct investing in businesses andfunds.] Many Members do not see a correlation between the performance of the stock market and what has (orhas not been done) to fix the economy. Public equity allocation remains way off its over 30% allocation prior to2009.
  • Private Equity ‚Äì Members’ allocation to private equity increased by four percentage points from the firstquarter of 2011 to the first quarter 2012 to 14%, which may be an indication that Members remain leery of thepublic markets and are finding more attractive opportunities in the private markets. Many TIGER 21 Membershave considerable personal experience in the private equity sector and believe that over the long term itrepresents some of the best opportunities to preserve and build capital. There can be outstanding opportunitiesfor discounted companies that have tremendous long-term potential.
  • Real Estate ‚Äì Real estate saw the largest increase in allocation over the past year with a five percentage pointincrease. This increase started in the second quarter of 2011 and reached 24 % by the fourth quarter of 2011. Inthe current low interest rate environment Members like Real Estate because it offers additional tax advantages.

This allocation may be favored because Members who missed some of the upside in the public equity marketslooked to real estate (especially distressed opportunities) to make up a little lost ground. Similar to privateequity, many Members have created their wealth in real estate and can evaluate these investments well.

TIGER 21, whose approximately 200 Members throughout North America maintain investable assets in excess of$18 billion, collected Member data measuring aggregate asset allocation exposures based upon Members’ annualPortfolio Defense presentations. Quarterly tracking of these trends by TIGER 21 is now in its fifth year.

TIGER 21 includes a cross-section of serial entrepreneurs, Wall Street professionals, money managers and corporateexecutives who meet monthly in small group settings to share investment ideas and personal experiences. Groupsconduct regular Portfolio Defenses ¬Æ each month whereby Members share with one another their investmentchoices ‚Äì because we believe that no one person is as smart as the “collective intelligence” ¬Æ of the group. Membersalso tap into a secure online forum where they can pose questions and obtain information from other Members oninvestments and lifestyle issues ‚Äì including real-time exchange in response to market gyrations and other events.

Please use this link for access to the full report: https://tiger21.com/docs/TIGER21AssetAllocation1Q2012.pdf

About TIGER 21:TIGER 21 (The Investment Group for Enhanced Results in the 21st Century) is North America’s premier peer-to-peerlearning network for high net worth investors. TIGER 21 has 193 Members who collectively manage over $18 billionin investable assets and have been entrepreneurs, inventors and top executives. TIGER 21 focuses on improvinginvestment acumen as well as exploring common issues of wealth preservation, estate planning and family dynamicsbeyond finance. Founded in 1999, TIGER 21 is headquartered in New York City and has groups in New York, LosAngeles, San Francisco, San Diego, Miami, Washington, DC, and Dallas, as well as Canadian groups in Vancouver,Toronto, Calgary and Montreal. More information can be found at www.tiger21.com.

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