Tiger 21's asset allocation

Marketwatch.com featured an article on a group of 125 high net worth investors whose common membership is under the name "Tiger 21 Group". On average, members have a minimum net worth of at least $10 million U.S. Dollars and with obvious confidentiality clauses, most of their names are not known. This is a group where the $25k annual fee is merely pocket change given the potential insight within its so-called peers although most of the subgroups presumably are limited to 10-12 members depending on geographic location. While most of the membership presumably reside in the New York area, there are subchapters in San Francisco, Los Angeles, San Diego, Palm Springs, and Miami.

The total net worth of the entire membership is around $7 billion U.S. Dollars so this likely excludes the top 100 names on the Forbes Richest 400. On average, their net worth is divided as follows:

30% Stocks
27% Real Estate
15.6% Fixed-Income Investments
9.6% Hedge Funds
9% Cash
8.8% Private Equity

While I likely disagree with the composition of the ideal asset allocation, one detail I did agree on was that each member was not willing to spend more than 3% of their total net worth in a given year. So assuming a person was worth $10 million, they wouldn't spend more than 300k in a single year. Another interesting statistic was with regards to the 9% cash position. Presumably, members believed this amount represented enough cash to ride any prolonged three-year downturn in one of their core holdings without having to sell. Another way of saying it is, they can go to sleep at night, knowing their cash is in "their pillow or wallsafe".