Half of households with a net worth of $25 million or more,
not including primary residence, own hedge funds in 2010, according to a report
enititled “The $25 Million Plus Investor” by Spectrem Group.

This represents a 43 per cent increase in hedge-fund ownership
from 2007, when just 35 per cent of the wealthiest households invested in this
alternative asset class.  The mean
hedge fund holding for this group is $4.6 million in 2010.

“While hedge funds have gotten something of a black eye in
recent years, the nation’s wealthiest investors have not been scared off,” said
George Walper president of Spectrem Group.

More than half of households worth $25 million more own
private equity (56 per cent) and venture capital (52 per cent) in 2010 – up
from 39 per cent and 37 per cent, respectively, in 2007.  Other alternatives this group holds in
2010 include private placements (49 per cent), precious metals (44 per cent)
and commodities (38 per cent).

The survey queried financial decision makers in 101
households with a net worth of $25 million or more and was conducted by mail
and online in August 2010.