Tiger 21’s 5 Favorite Stocks & Fund Managers

The annual survey looks at the most valued investments and fund managers of Tiger 21’s 220 ultra wealthy members

Ultra wealthy investors in the Tiger 21 network continue to favor public equities, with private equity trending in their portfolios, according to the group’s Member Favorites Survey.

The annual survey looks at the most valued investments and managers of Tiger 21’s 220 members, who collectively manage more than $20 billion in investable assets.

Forty-one percent of respondents chose equity-themed investments as their favorite this year, a two percentage point increase from 2012 and 10 points above the 2011 level. 

Individual stock purchases were the most common public equity investment at 50%, followed by ETFs/index funds at 21% and equity-themed hedge funds and long-only mutual funds tied at 14% each.

The most popular public equity sectors among respondents were financials (22%), technology (20%), ETFs (19%) and consumer (12%).

(Check out Top 10 Most Liked U.S. Companies: 2013 on ThinkAdvisor)

Seventeen percent of members chose private equity as a favorite investment strategy this year, continuing a multiyear trend of increasing focus on the sector.

“Members are spending more time backing startups, sitting on boards and getting involved with private companies because that is where they created their own wealth and they know it can be an engine of growth in their portfolio,” Tiger 21’s founder and chairman Michael Sonnenfeldt said in a statement.

Hedge funds fell to 17%, a two percentage point drop from last year’s survey when it was alone in the number two spot, and five points below its ranking in the 2011 survey. 

Real estate investments remained the number four member favorite at 15%, up from 11% this category received in the 2012 survey. Fixed income received 7% of responses, remaining in the fifth spot in category rankings.

Check out the members’ 5 favorite stocks followed by their 5 favorite fund managers:

Traders on the floor of the NYSE. (Photo: AP)

5. SPDR S&P 500

2012 Rank: (not ranked)

Paul Jacobs, CEO of Qualcomm (Photo: AP)

4. Qualcomm

2012 Rank: 20th

The San Diego-based company is the biggest maker of chips for mobile phones.

Stock Market rising chart.

3. iShares MSCI EAFE Index Fund

2012 Rank: (not ranked)

 

Apple headquarters in California. (Photo: AP)

2. Apple

2012 Rank: 1st

Warren Buffett (Photo: AP)

1. Berkshire Hathaway

2012 Rank: 2nd

In a surprisingly downbeat comment about Apple, Tiger 21’s founder and chairman Michael Sonnenfeldt told Bloomberg that “the bloom” was off of the tech behemoth.

“For people who held Berkshire Hathaway, it’s held its appeal,” Sonnenfeldt said, “but for Apple, a lot of people who were on that ride have realized that perhaps the best days are behind it.”

On the next page, find out Tiger 21 members’ five favorite fund managers:

5 Favorite Managers

Tiger 21 respondents’ five favorite managers across all types of investments were in line with their top favorite investments.

Two firms focused on publicly traded MLPs that concentrate on mid-stream energy assets: 1) Chickasaw Capital Management; 2) Neuberger Berman’s The Rachlin Group; two others were hedge funds: 3) Millennium Management, a multistrategy manager; 4) Elliot Management, whose focus is distressed; and 5) Golub Capital, a private equity shop that focuses on mezzanine loans to midmarket lenders.

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