Tiger 21 Investors Allocate More to Cash, Private Equity

“Some members are nervous about the economy and public markets, and are therefore increasing cash allocations for security reasons and to position for maximum flexibility for when the next great opportunity surfaces,” he said.

“To offset concerns members have about the public markets — both in low-yielding debt and in the equity markets — members have turned to investments more in their control that will drive portfolio growth over time. For many of our members, this is private equity.”

The report said private equity remained a focus of many members, comprising 22% of the average member’s portfolio. Members’ private equity exposure has increased from 9% in early 2008.

As part of its survey, Tiger 21 asked members what they saw as the best sector to invest capital in for the next five years.

The varied responses reflected the organization’s diverse membership. Some 26% of respondents said real estate was the best sector, while 16% chose private equity and 12% some type of energy investment.

The report said Tiger 21 members had already increased their allocation to real estate in the third quarter to 25%. Other third-quarter allocations:

• Private equity: 22%
• Public Equities: 22%
• Fixed income: 12%
• Cash and cash equivalent: 11%
• Hedge funds: 6%
• Commodities: 1%
• Currencies: 0%