Alt Investments

UHNW Embrace Hedge Funds

Wendy Connett Editor New York 10 November 2010

UHNW Embrace Hedge Funds

Half of households with a net worth of $25 million or more, not including primary residence, own hedge funds in 2010, according to a report enititled “The $25 Million Plus Investor” by Spectrem Group.

This represents a 43 per cent increase in hedge-fund ownership from 2007, when just 35 per cent of the wealthiest households invested in this alternative asset class.  The mean hedge fund holding for this group is $4.6 million in 2010.

“While hedge funds have gotten something of a black eye in recent years, the nation’s wealthiest investors have not been scared off,” said George Walper president of Spectrem Group.

More than half of households worth $25 million more own private equity (56 per cent) and venture capital (52 per cent) in 2010 – up from 39 per cent and 37 per cent, respectively, in 2007.  Other alternatives this group holds in 2010 include private placements (49 per cent), precious metals (44 per cent) and commodities (38 per cent).

The survey queried financial decision makers in 101 households with a net worth of $25 million or more and was conducted by mail and online in August 2010. 

 

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes