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Wealthy Investors Are Leaving Hedge Funds for Real Estate

July 24, 2017

Wealthy Investors Are Leaving Hedge Funds for Real Estate

July 18, 2017 | by Simone Foxman | Bloomberg

  • They had record 33% of portfolios in property, survey says
  • Investor wagers on hedge funds fell to record low 4%

Wealthy investors boosted bets on real estate and left hedge funds and equities as concern over high valuations and geopolitical risk push them back to basics.

They had 33 percent of their portfolios on average in real estate at the end of the second quarter, according to a survey by Tiger 21 released Tuesday. That’s a record since the group of high net-worth investors started measuring aggregate allocations in 2007.

The average allocation of members in hedge funds fell to an all-time low of 4 percent. That compares with about 5 percent in the fourth quarter of 2008 in the midst of the financial crisis. Hedge funds have been under pressure from investors troubled by their high fees and poor performance.

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Matthew C. Strife
Blue Vault Services
April 11, 2016

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