Tiger 21's ultra-high-net-worth members do not think investment performance in 2014 can match last year's banner year.
Ninety-one percent of Tiger 21 members found the performance for 2013 better than expected, but they do not feel the market will perform quite as well this year, according to a new survey.
Sixty-six percent anticipate the market performance will be worse than 2013. Twenty-six percent feel it will be the same and only 8 percent think it will perform better.
Members of Tiger 21, a peer-to-peer learning organization for ultra-high-net-worth individuals in the United States and Canada, usually take a hands-on approach to investing and 62 percent say their portfolio’s performance last year was better than expected. Another 27 percent say their portfolios performed as expected and 11 percent say they had poorer returns than anticipated.
When judging types of investments, 27 percent of Tiger 21’s members feel public equities will perform the best next year; 22 percent think private equities will do best, 18 percent have faith in real estate and 11 percent feel hedge funds will be the best performers.
“Coming off a year when the S&P posted an astounding total return of 27 percent, it is not surprising that members are anticipating a less robust stock market in 2014. Most of our members are reasonably diversified across a series of asset classes, so their entire portfolio did not grow as much as the S&P, but if there is a pullback, they will be somewhat insulated,” says Michael Sonnenfeldt, founder and chairman of Tiger 21.
“TIGER 21 members are trying to position their portfolios for long-term success, to insure that they manage the wealth they built up in their businesses wisely – although some also created wealth simply as great investors,” he adds.