{"id":305680,"date":"2014-12-16T12:15:00","date_gmt":"2014-12-16T17:15:00","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/uncategorized\/hnw-investors-turn-to-private-equity\/"},"modified":"2014-12-16T12:15:00","modified_gmt":"2014-12-16T17:15:00","slug":"hnw-investors-turn-to-private-equity","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/research-and-markets\/hnw-investors-turn-to-private-equity\/","title":{"rendered":"HNW investors turn to private equity"},"content":{"rendered":"<p> TIGER 21, a peer-to-peer learning network for high-net-worth investors in North America, has released its annual Member Favorites Survey showing that public equities, while still the most favored investment by a wide margin, lost ground to private equity and real estate over the past year.<\/p>\n<p> The survey of TIGER 21’s more than 290 members, who collectively manage approximately US$30 billion in investable assets, is designed to highlight members’ most preferred investments and managers.<\/p>\n<p> Public equities were named by 35% of members as a favorite investment, a decrease of six percentage points from a year ago. The most common public equity investment was individual stock purchases at 43%, a seven percentage point decrease from 2013 and a full 14 points below 2012. ETFs, at 25%, gained four percentage points from last year, followed by mutual funds\/long only funds at 17% and hedge funds at 14%.<\/p>\n<p> The most popular equity sectors according to respondents were financials at 27% followed by consumer discretionary and energy, both at 16%. The next most popular sectors were technology at 13% and health care at 11%.<\/p>\n<p> Apple Inc. (<a href=\"http:\/\/tools.investmentexecutive.com\/stock\/s_ca?cobrandId=96&culture=en-CA&t=0P000000GY&region=USA\" target=\"_blank\">Nasdaq:AAPL<\/a>) and Berkshire Hathaway Inc. (<a href=\"http:\/\/tools.investmentexecutive.com\/stock\/s_ca?cobrandId=96&culture=en-CA&t=0P0000063T&region=USA\" target=\"_blank\">NYSE:BRK.A<\/a>) again swapped spots for favorite single stock pick with Apple reclaiming the top position and Berkshire at number two. The next three favorite equity picks were SPDR S&P 500 ETF, Health Care SPDR ETF, and iShares MSCI Emerging Markets ETF.<\/p>\n<p> Nineteen per cent of members chose private equity as a favorite investment strategy this year, continuing the multi-year increase seen for this asset class. For the first time, the survey asked members how their private equity allocation breaks down. Sixty-three per cent of private equity investment is allocated to direct investments in members’ own companies, another 17% went to private companies that were not their own, and the remaining 20% was targeted to funds.<\/p>\n<p> Real estate moved from the fourth favorite investment strategy to number three at 16%, gaining one percentage point from last year. Residential real estate investments were named most often, followed by commercial investments.<\/p>\n<p> Hedge funds lost two percentage points from a year ago, with 15% of members selecting a hedge fund investment as their favorite for 2014. The hedge fund category broken down by investment strategy showed a bit of movement. Equity long\/short remained the most popular (39%), but declined by five percentage points. Relative value strategy (24%) moved up two positions to the second most popular strategy. Next was multi-strategy (12%) followed by event driven (9%), fund of funds (9%), and macro (6%).<\/p>\n<p> “Members’ allocation to hedge funds is at an all-time low,” said Sonnenfeldt. “Hedge funds used to be a primary substitute for public equities, but it is possible that members now feel they are getting more efficient equity exposure through ETFs and Indexes.”<\/p>\n<p> Fixed income was the fifth most popular investment category at 9%. For the third consecutive year, municipal bonds were the largest fixed income category member’s mentioned with exposure through mutual funds, individual names and managed portfolios from advisors.<\/p>\n<p> Commodities gained three percentage points to move to 4% this year. Energy commodities were the predominate investment listed by members.<\/p>\n<p> Cash and cash equivalents were named by 2% of members, same as in 2013.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TIGER 21 releases annual Member Favorites Survey<\/p>\n","protected":false},"author":38954,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2313],"tags":[2403,2467],"yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/305680"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/38954"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=305680"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/305680\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=305680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=305680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=305680"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=305680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}