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Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Diversification Drives High Net Worth Interest in Alternatives

Nearly nine-in-ten high net worth investors cite diversification as second only to risk as the primary criteria in selecting an investment.

| BY Donald Liebenson

High net worth investors are increasing their exposure to alternative investments, according to a new study.

High net worth investors using alternatives have, on average, more than one-fifth of their portfolios (22 percent) invested in alternative investments such as hedge funds, private equity, venture capital and precious metals Six-in-ten (62 percent) have increased their investment in alternatives over the past 12 months, while one project their exposure to alternatives will increase over the next five years. Two-thirds believe their investment exposure will remain the same.

Of those investing in alternatives, the highest percentage (61 percent) report reallocating from cash and money accounts. Forty-four percent are reallocating from equities and 22 percent from fixed income.The most common method for investing in alternatives is through mutual funds (65 percent), followed by ETFs (40 percent) and managed funds (38 percent).

Half of the high net worth investors surveyed said that their investment in alternatives is driven primarily by diversification, followed by investment growth and return potential and protecting their principal.

Allocations into alternatives are growing as HNW investors are taking a closer look at their investment returns and diversification goals,” said President of MainStay Investments in a statement.”

Nearly nine-in-ten high net worth investors cite diversification as second only to risk as the primary criteria in selecting an investment, according to Spectrem’s Millionaire Corner research.

High net worth investors report a positive mindset toward alternative investments, with 88 percent saying they would recommend alternatives to other investors. Two-thirds (67 percent) said that including alternatives in their portfolios has been positive, while an equal percentage reports the effect on their portfolio has been net positive.

Among the factors holding back reluctant high net worth investors from alternatives is concern about risk (49 percent) and lack of information about them (61 percent). Financial knowledge is a priority to high net worth investors, Millionaire Corner research finds, and the MainStay study underscores the premium these investors place on it. Seven in-ten respondents said they are specifically looking for information about potential investment risk as well as a description on how these investments work.




About the Author

Donald Liebenson

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.