We recently undertook a survey to determine the private investment strategies most likely to attract allocations over the next 12-months.
The survey went out to over 100 allocators of capital including institutional investors, family offices, wealth managers and high-net worth individuals with a 45% response rate.
The responses were split approximately 20%/30%/30%/20% according to the above investor types respectively.
Most respondents provided multiple answers to the question – “Which strategy are you most likely to allocate to over the next 12 months?”
In order to compile the results below I added up all the answers and calculated the percentage by strategy.
It seems I captured most of the pertinent strategies in the options provided but 4 additional investment strategies were furnished under the ‘other’ option.
It may come as little to no surprise that we are all clamoring for yield compliments of the Federal Reserve and ultra-low interest rate environment.
It seems as if hardly any of us are hunting elephant returns which admittedly is more a representation of the clients we serve i.e. pools of capital focused primarily on capital preservation and a real rate of return.
1 – Gold & Silver has been on a tear lately and are exhibiting a negative correlation to equities – a hedge;
In fact I would postulate that most of us are quite defensively positioned in our portfolios because the next 2 favored investments strategies were:
Interestingly the lower end of the voting table all contained what I would characterize as ‘risk on’ strategies focused mostly on capital appreciation with some income component:
For the auditors amongst us that adds up to 98%. The difference I would ascribe to rounding or a margin of error in the poll rates … which we know is meaningless unless this was a Brexit vote!
And of course not everyone would use a fund … many respondents prefer a direct or co-investment approach. [Our preference is for a mix].
Thank you to all who participated I found the results interesting and informative and I hope you do too.
Thank you for reading my post. I regularly write about private market opportunities and trends. If you would like to read my regular posts feel free to also connect on LinkedIn, Twitter or via Atlanta Capital Group Investment Management.
Greg Silberman is the Chief Investment Officer of Atlanta Capital Group Investment Management [ACGIM]. Atlanta Capital Group Investment Management specializes in creating custom private market solutions for RIA/Family Office clients.
Nothing in this article should be interpreted as a recommendation to buy any security. Please conduct your own due diligence.
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