Tuesday, 21 October 2014
Last updated 52 min 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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