TIGER 21: Tough Love For the Very Rich

From Barrons: Back in 1998, Michael Sonnenfeldt of New York made tens of millions of dollars when he sold his real-estate firm, Emmes & Co. He had to quickly get up to speed on how to be a successful portfolio manager, rather than a builder of buildings. At the time, he thought to become a good investor he had to “join a suburban golf club” and pick up stock tips in the locker room. Luckily, he also knew enough to know he didn’t know enough.

So Sonnenfeldt founded a peer-run investment group, The Investment Group for Enhanced Results in the 21st Century, or TIGER 21 for short. The organization runs professionally facilitated monthly meetings for 10 to 14 peers, where each member has a chance to present to the group their portfolio strategy and allocation decisions, alongside a careful articulation of their investment criteria and long term objectives – what their risk tolerance is, for example, or whether their goal is to spend it all down before they die, or create a family legacy to last generations.

The other members in the group then pick apart the portfolio, looking for disconnects between stated goals and what is actually happening in the portfolio. Members coming into TIGER 21 first have to submit to a rigorous vetting and due diligence process to show they have more than $10 million in liquid assets to invest, before signing nondisclosure agreements and paying $30,000 in annual dues.

Find out more at http://blogs.barrons.com/penta/2012/05/04/tiger-21-tough-love-for-the-very-rich/?mod=BOLBlog