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 and venture capital in 2010 – up from 39 per cent and 37 per cent, respectively, in 2007.  Other alternatives this group holds in 2010 include private placements , precious metals and commodities .

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.