Tiger 21 members plan to continue on the course set earlier in the year and increase allocations to cash and private equity during the last quarter of this year, according to the Tiger 21.
The ultra-wealthy investment club's survey, taken in September and released Tuesday, shows that 46 percent of respondents plan to increase allocations to cash and 44 percent plan to increase allocations to private equity.
The survey shows the respondents plan to maintain allocations to other categories, indicating they will reduce allocations to other categories across the board rather than reducing one particular category, Tiger 21 says.
Tiger 21, a networking and education organization for the ultra-wealthy, has 290 members who have a total of $30 billion in investable assets. An earlier Tiger 21 Asset Allocation Report showed that the members were already switching assets to cash and private equity in the first part of this year.
“The financial markets were challenging in the third quarter, especially with equity markets showing a lot of volatility,” says Michael W. Sonnenfeldt, founder and chairman of Tiger 21. Members of the elite group “prefer wealth preservation over the aggressive risk taking that wealth creation often entails. Our members are trying to make long-term investment decisions, and trying to avoid over-reacting to the ‘news of the day’ so they can focus on prudent moves with their money for the long term.”
Asked what sectors they see as the best investment over the next five years, 26 percent say real estate, 16 percent say private equity and 12 percent say energy.