Hedge funds and other alternative investments are an important tool for wealthy investors provided there is sufficient due diligence over the money managers, chief investment officer Leo Grohowski ofUnited States Trust Corp. said on Monday.
Some of the biggest U.S. Trust clients, such as family offices, are putting as much as 50 percent of their money into alternative investments, Grohowski said.
The alternative investments include hedge funds, private equity and venture capital.
The typical high net worth clients of U.S. Trust are currently putting about 10 to 15 percent of their money into alternative investments. Grohowski said he sees that moving tup to the 20-30 percent area.
