Hedge Funds

Wealthy are ignoring hedge funds, survey finds


Wealthy U.S. investors with more than $1 million of investable assets are largely absent from the hedge fund investor landscape, with 78% lacking any exposure to alternative investments, according to a new survey.

The survey, conducted by Chicago-based financial services firm Northern Trust, polled 1,235 investors representing $7.3 billion in total investable assets.

The pollsters found that of that group, more than half are inadequately diversified across asset classes - and most are not planning to change their allocations in 2005.

The survey revealed that about 59% of respondents were exposed to, but inadequately diversified across, four broad asset classes: