High-net-worth members of the Tiger 21 peer-to-peer learning network increased their allocation to real estate in the first quarter, again making it their highest allocated asset class.
Tiger 21 reported Monday that real estate investments increased by two percentage points during the first quarter, bringing members’ portfolio allocation to 29%. This represents the highest allocation to the property sector since the organization began tracking member data in 2007.
All other asset classes were flat in Q1.
Tiger 21’s chairman and founder, Michael Sonnenfeldt, noted in a statement that members had held their public equity exposure steady over the last 24 quarters despite the bull market in stocks, and many were prepared for a market correction.
“Members have seen more tangible value in private equity, where they can roll up their shirtsleeves and be directly involved with and in the critical information flow about the challenges and potential of the companies they invest in,” Sonnenfeldt said.
“Real estate has been equally attractive for some of the same reasons. Of course, we do have some members holding cash in order to be positioned to buy inexpensive stock during the next downturn.”
Looking Ahead to Q2
In a separate poll of members, Tiger 21 found that half planned to increase their real estate allocation in the second quarter, 38% planned to maintain their current allocation and only 12% planned to reduce it.
Private equity was the only other asset category to which many members planned to increase their holdings, with 44% planning to do so and 44% planning to maintain their current exposure.