With concerns about the global economy much in mind, Tiger 21 members continued to pursue a cautious approach to investing during the first quarter, according to the group’s latest asset allocation report.
Tiger 21 comprises some 200 investors across North America wealthy enough to pay the hefty $30,000 annual dues. The group’s members have investable assets totaling more than $18 billion.
“While many Tiger 21 members might feel the worst of the economic troubles are behind us, general consensus is that we are in no way in the clear,” Michael Sonnenfeldt, the group’s founder and chairman, said in a statement.
Members “are making very deliberate moves with their portfolio, only after much research and discussion,” he said, and they remain committed to long-term wealth accumulation and preservation.
For the new report, Tiger 21 collected data measuring aggregate asset allocation exposures based upon members’ annual Portfolio Defense presentations, according to the statement. Quarterly tracking of these trends is now in its fifth year.
Although asset allocation changes in specific categories from quarter to quarter have been muted, asset allocation changes over the previous year show a definite shift in positioning. Among some of the report’s highlights: 1. Cash
Members’ cash allocation was reduced by two percentage points to 12% from the fourth quarter of 2011 to the first quarter of 2012, and is now five percentage points off a high of 17% in the first quarter of 2011. This could signal a cautious optimism in the economy, but members’ allocation to cash is still above what most financial advisors generally recommend.
Tiger 21 members like to keep at least a three or four year reserve in cash and cash equivalents, the statement said.
2. Fixed Income