The chart below is from Institutional Investor and it tracks where family offices which are essentially private wealth management groups are placing their capital. These charts always tend to follow a very generic flow – a lot in liquid assets such as equities, nowhere near as much as you would think in real estate and very little to almost nothing in precious metals. According to the survey, the big mover in asset class has been the drop in funds allocated to hedge funds, apparently, investors are baulking at the high fees and lack of performance offered by hedge funds. Perhaps they have finally gotten around to reading a copy of The Hedge Fund Mirage by Simon Lack – compulsory reading if you are planning on investing in hedge funds.
