Super rich still making money in crisis

http://www.msnbc.msn.com/id/44208331/ns/business-stocks_and_economy/#.TlBFGl2KJhk

updated 8/19/2011 5:48:23 PM ET

LONDON — Financial advisers to the world's richest people report some of their top clients have continued to make money throughout recent market turmoil by harnessing sophisticated investments out of reach to mainstream investors.

With equity markets plunging, most investors have suffered losses to their pension funds and portfolios, but those able to meet the multi-million dollar investment thresholds of private equity and some hedge funds are coming out ahead.

"You've got so many investment opportunities that are open only to very rich people," said one London-based financial adviser specializing in ultra-rich investors.

"The super rich are doing very well. They're getting good advice, they're getting access to stuff that other people don't have access to," he said.

Certain investment vehicles, such as hedge funds, can thrive at times of market stress because they are able to use risk management tools such as derivatives and make short-selling sales that make money when an asset price falls.

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The fact that the super rich can write checks for millions of dollars also means they have exclusive access to the few real estate assets where prices are still rising, such as the central London residential property market.

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