Friday, 29 August 2014
Last updated 4 hours ago
Apr 25 2007 | 10:41am ET
With all of the money pouring into hedge funds these days, one would think that wealthy Americans would have a large chunk of their portfolios invested in absolute return vehicles, but that isn’t the case. According to a study just released by wealth management firm U.S. Trust, high-net-worth respondents—those Americans with over $5 million in investable assets— said that hedge funds make up only 2% of their portfolios. That figure jumps to 6% for ultra-high-net-worth respondents, who are defined as those with over $25 million in total assets.
But while respondents’ money isn’t heavily invested in hedge funds, the majority of HNWs do view hedge funds as delivering a very good ROI (55%). About half also believe that hedge funds reduce portfolio risk (51%). However, three out of four respondents agree that hedge funds are difficult to investigate (77%) and that a good fund is difficult to identify (76%).
“The findings reveal that there is still a limited understanding of hedge funds and other sophisticated products, even among Americans wealthiest households,” said Frances Aldrich Sevilla-Sacasa, president and chief executive officer of U.S. Trust. “More importantly, they also highlight the need for continued investor education around alternative investment vehicles and the importance of having unbiased advice.”
The U.S. Trust Survey of Affluent Americans is the 26th such survey to be conducted by the New York-headquartered firm, which has approximately $98 billion in assets under management.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...