Public Equities Favored By Tiger 21 Members
Public equities are the most popular type of investment among Tiger 21 members, with 31% of its members citing them as their top preference, according to a new survey.
Many investors in the peer-to-peer network-180 high-net-worth investors who control $15 billion in investments-also expressed a preference for fixed income, along with cash and cash equivalents, which reflects a desire for safe haven assets, according to the group.
"The stability afforded by fixed income is in line with members' appetite for safer investments and generally reliable returns," said Michael Sonnenfeldt, founder and chairman of Tiger 21. "Members report allocating more than a quarter of their portfolios to cash and fixed income, echoing the cautious approach to investing that appears to be the new norm."
Tiger 21 is an information-sharing network headquartered in New York City with chapters in 11 major cities in the U.S. and Canada.
"In general, Tiger 21 members are interested in preserving the wealth they've built up over many years of hard work rather than taking unwarranted risks in a very volatile environment," Sonnenfeldt said.
Public equities, including direct investments, ETFs and managed accounts, are the favorite investment of 31% of respondents. This is followed by hedge funds (22%), real estate (12%), fixed income (11%), private equity (11%), commodities (7%), cash (4%) and currencies (1%), according to the survey.
Of those investing in public equities, half said individual stock purchases were their preferred method of investment. Hedge funds and ETFs/index funds followed. Although members say public equities are their favorite investment, they allocated only 19% of their assets to the class.
Apple, Berkshire Hathaway, General Electric and Microsoft came in at the top for preferred stocks.
For those who like hedge funds, equity long/short strategy was the most preferred, while event-driven, multi-strategy and macro funds also scored high.
The top hedge fund managers, according to Tiger 21 investors, are Elliott Management Corporation, Alpine Associates, Millennium Management LLC, Ramius Advisors LLC and Hayman Advisors LP.
Some investors preferred master limited partnership funds-specifically Chickashaw Capital Management's MLP Managed Account and Neuberger Berman LLC-The Rachline Group's Income Plus Portfolio. Master limited partnership funds combine the tax benefits of a limited partnership with the liquidity of public traded securities.
Other investment managers ranked in the top 10 by Tiger 21 members are Golub Capital Inc., private equity managers; Morgan Stanley Smith Barney LLC-The Schmidt Group, commodities; and Southeastern Asset Management Inc., equity funds. Pimco Investments LLC came in first for fixed-income investment managers.
Investors put their largest allocation in real estate, at 25%, reflecting the fact that many Tiger 21 members amassed their fortunes through real estate investment, according to Tiger 21.
"Many members created their wealth in this sector and feel comfortable investing in something they know," Sonnenfeldt speculated. "Over the long term, real estate, when well bought, has represented a very good opportunity to build and preserve wealth."
On The Move
Fairholme Funds of Miami has appointed 30-year industry veteran Fred Fraenkel as chief research officer. Most recently vice chairman of Beacon Trust Company, Fraenkel was formerly the chairman and founder of Millennium 3 Capital, a venture firm specializing in early stage companies.
CBRE Group has completed the acquisition of ING real estate investment management operations in Europe, which it has relaunched as CBRE Global Investors.. Headquartered in Los Angeles, CBRE Global Investors has more than 1,100 employees in 21 countries and serves over 600 institutional client's worldwide.
Clifton Gunderson and LarsonAllen, both certified public accounting and consulting firms, have announced plans to merge and form CliftonLarsonAllen. The new firm will rank among the top ten accounting firms in the U.S., according to the firm. CliftonLarsonAllen will have more than $550 million in combined revenue, employ more than 3,600 professionals, including 500-plus partners, and will operate from 25 states and Washington, D.C.
Cole Real Estate Investments of Phoenix, Ariz. announced that financial industry veteran Stephan Keller has joined the firm as executive vice president and chief financial officer. Previously COO of UBS's financial institutions group in Europe, the Middle East and Africa, Keller will focus on expanding the firm's global distribution capabilities.
Cornerstone Advisors of Bellevue, Wash. has hired Katie Robinette as director of private equity. Robinette will evaluate investment opportunities, complete manager due diligence and implement fund-of-fund portfolio strategies for Cornerstone clients. Previously director of investments for the California Institute of Technology, Robinette brings ten years of experience in the financial industry to Cornerstone.
Handler Thayer LLP has hired three attorneys: David Berek, Katarinna McBride and Andrew Morton have joined the Chicago-based law firm as partners. Berek and McBride are partners in the advanced planning and family office practice group. Morton is chair of the sports and entertainment law group and is based in Washington, DC.