Ultrawealthy investors have been reallocating their portfolios over the past year, increasing the size of their private and public equity positions, according to Tiger 21’s latest asset allocation report.
The fourth quarter report of the the 200-strong peer group with combined investable assets of more than $19 billion represented investment exposure as of the end of the fourth quarter.
Tiger 21 said in a statement that data measuring aggregate asset allocation exposures were collected during members’ annual Portfolio Defense presentations.
The report’s key findings included the following:
- Private equity allocation rose six percentage points from the fourth quarter of 2011 to 19%, and was up 10 points from a low of 9% in fourth quarter 2010.
- Public equity allocation was up three percentage points to 24% from fourth quarter 2011.
- Fixed income allocation eked out a one-point increase to 14% in the fourth quarter, remaining basically flat after having fallen seven percentage points in the second quarter of 2012.
- Real estate allocation fell by three points from fourth quarter 2011 to 21%.
- Hedge fund allocation was at 7%, down two points from fourth quarter 2011.
“The increase in private equity is an historic shift and indicates that our members believe the way to create wealth over the long term is in the investment in equities, in particular through private equity,” Tiger 21’s founder and chairman, Michael Sonnenfeldt, said in a statement.