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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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Multi-Millionaire Investors Cool to Hedge Funds

Investment in hedge funds has declined among multi-millionaire investors, but advisors are steering the richest toward the products.

| BY Adriana Reyneri

Multi-Millionaire investors appear unlikely to invest in hedge funds in the current economic environment, according to a new Millionaire Corner study that tracks a sharp decline in assets held hedge funds over the past two years.

Multi-millionaires describe themselves as a largely moderate group of investors, and their appetite for alternative investments appears to be diminishing somewhat. Nearly three-fourths (74 percent) say they have set aside a portion of their assets for more speculative or higher risk investments,  yet a smaller share is now invested across a broad range of alternative investments and the average balance held in these products is also lower than in 2010.

Less than half (47 percent) of multi-millionaires are currently invested in hedge funds, compared to 50 percent in 2010, according to the $25 Million Plus Investor 2012 study released today by Millionaire Corner.  Assets held in hedge funds have declined more dramatically, from an average balance of nearly $4.6 million in 2010 to $2.8 million in 2012.

Industry-wide, hedge fund assets were $1.71 trillion in June, down 29.5 percent from their peak of $2.4 trillion set in June 2008, according the most recent TrimTabs/Barclay Hedge Hedge Fund Flow Report. According to a statement from Barclay Hedge president, Sol Waksman, “The hedge fund industry can’t seem to get out of the doldrums. Industry performance continues to lag popular benchmarks such as the S&P 500, and asset growth has been flat for most of the past year.”

Investors withdrew $32.1 billion from hedge funds in the 12 months ending in June 2012, according to the Barclay report. In the previous 12-month period, investors poured $103 billion into the funds. Fixed-income hedge funds have experienced the strongest inflows and best performance of the year. Charles Biderman, CEO of TrimTabs, said in a statement, “Fixed Income funds were a haven, reliably turning profits and attracting inflows as one crisis after another whip-sawed financial markets around the globe.”

Unlike fixed-income hedge funds, no equity-related hedge fund categories showed a profit over the past 12 months, according to Biderman, who said, “Investors hoping to cash in on hedge fund managers’ stock-picking skills must be disappointed.”

The rocky performance hasn’t discouraged financial advisors from recommending hedge funds to a significant share of multi-millionaire investors. Nearly half (49 percent) of investors with a net worth of $125 million or more says their advisor has encouraged them to invest in hedge funds.