Where are the wealthy putting their money? According to one new report, it's not hedge funds. Wealthy members of the Tiger 21 peer-to-peer learning network instead increased their allocations to real estate and commodities in the first quarter, according to the organization's latest report.
Real estate allocations hit a new high of 32 percent in the first quarter, two percentage points above the previous high in the fourth quarter. Members also allocated 1 percent to commodities in the first quarter, their first commodity exposure since the third quarter of 2014.
Allocations to private equity, fixed income and hedge funds each fell by one percentage point from the fourth quarter to 20 percent, 9 percent and 5 percent, respectively. At 5 percent, hedge funds have tied their historic low for members’ allocations.