Wall Street Tigers Bearish on Stocks

Investment club moves to hedge funds, private equity instruments
By Peter Fearon,  Newser Staff
Posted Mar 28, 2007 7:37 AM CDT
Wall Street Tigers Bearish on Stocks
Wall Street Tumbles After Chinese Stocks Plunge 9 Percent    (Getty Images)

Tiger 21—the elite investment club whose members have at least $10 million each — is moving away from stocks and into alternatives like hedge funds and private equity instruments. Michael Sonnenfeldt, Tiger 21 founder, reports that assets in stocks are down 10 percent from last year, based on members' growing worries about instability in the global markets affecting U.S. performance.

The group's current allocation is 30 per cent in stock, 28 per cent in real estate, 15.6 per cent in fixed income investments, 9.6 per cent in hedge funds, 8.8 per cent in private equity and 9 per cent in cash.  Fifty-five percent of members see 2007 as riskier for investing than last year. (More Michael Sonnenfeldt stories.)

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