Big bucks investment club cuts back on stocks -- others to follow?

Posted Mar 31st 2007 3:10PM by Zac Bissonnette
Filed under: Forecasts, Other Issues, Private Equity, Personal Finance

Tiger 21, the world's richest investment club, is cutting back on stocks. Comprised of 123 members with combined assets of $7 billion, the club is focused on investment education for high net-worth individuals (although one one might assume they already know a thing or two about money). The group sports an unusual portfolio:

30% stocks
28% real estate
15.6% fixed-income
8.8% private equity
9.6% alternative investments (e.g. hedge funds)
8% cash

While this may seem bizarre, the portfolio's construction is a result of the unique needs of rich investors, who rely on their investments for income. Very few are still working. It will be interesting to see whether smaller investors follow the lead of the wealthy in moving out of equities. If they do, the next few months could be a doozie for financial markets.

Tags: Alternative investments, AlternativeInvestments, Hedge Fund, HedgeFund, Investing Clubs, InvestingClubs, investment education, portfolios, private equity, real estate, Tiger 21, Tiger21, wealthy investors

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Reader Comments (Page 1 of 1)

3-31-2007 @ 5:07PM

Jay Ward said...

The rotation out of stock equities seems to be consistent wth other investment clubs.

FMPartners Financial has rebalanced for the next quarter with less than 40% allocated to stock equities.