Hello All, Does anyone know of any studies, reports, or sources suggesting the percentage allocation of private equity or hedge fund investments in an individual investors portfolio? Thanks
I am not aware of such a survey but I think it depends on the individual’s situation, risk tolerance and time horizon. Both hedge funds and PE require a longer time horizon. If you run and optimization the answer you might get 75% to 80% allocated to Alts which is unreasonable. A rule of thumb (for institutional investors at least) is that start at 5% allocations to PE, HF, RE etc. and further increments should also be in the 5% range.