Every year, Tiger 21, the peer-to-peer network of ultra-wealthy investors, asks its members to name their favorite investments and managers.
This year, though still far in the lead, public equities gave ground to private equity and real estate as members’ favorite investment. Thirty-five percent of respondents chose public equities, down from 41% a year ago.
The most common investment for 43% was individual stock purchases, a seven percentage point drop from 2013, and 14 points below 2012. Exchange-traded funds at 25% were the next most common investment, followed by mutual funds/long-only funds at 17% and hedge funds at 14%.
As for sector investing, 27% of respondents favored financials, 16% consumer discretionary and energy, 13% technology and 11% healthcare.
The survey found that Apple (AAPL) and Berkshire Hathaway (BRK.A) had again traded spots for favorite single stock pick, with Apple on top this year. Rounding out the top five equity picks were SPDR S&P 500 ETF (SPY), Health Care SPDR ETF (XLV) and iShares MSCI Emerging Markets ETF (EEM).
“Our members are long-term investors,” Tiger 21’s founder and chairman Michael Sonnenfeldt said in a statement.
“In the case of Apple and Berkshire Hathaway, regardless of which stock comes in on top, their consistent presence on our list shows that our members have a fundamental belief in those companies for the long-term.”
For this year’s member-favorites survey, Tiger 21 polled its more than 290 members, who collectively manage approximately $30 billion in investable assets.
Private Equity Gains, Hedge Funds Decline
Nineteen percent of wealthy members chose private equity as a favorite investment strategy this year, continuing the multi-year increase seen for this asset class.