– Family Office Exchange (FOX), a global membership organization focused on networking, objective guidance, and continuous learning for families, family offices, and advisors brought together a wide range of investment leaders in New York City to explore a return to volatility. Mark W. Yusko, Founder, CEO and Chief Investment Officer, Morgan Creek Capital Management, LLC forecasted a "Great Separation," as central banks raise interest rates and volatility returns to the markets, creating more dispersion across strategies, potentially rewarding both active managers and short sellers. Yusko warned that the “smart money started trading in January and has been selling ever since.”
A brief survey of participants identified their top three concerns to be 1) uncertainty in the markets related to volatility and geopolitics, 2) exploring emerging opportunities, and 3) managing and optimizing their investment portfolios. “As a historically long expansion continues, many investors are wary about the medium-term outlook across investment markets”, says Kristi Kuechler, Managing Director of the Investor Market at Family Office Exchange. “FOX families recognize the uncertainty in the markets but are looking for opportunities that come with times of disruption, particularly with direct investing.”
Participants heard from other industry experts assembled by FOX who focused on responses to volatility including:
- The Evolution of Asset Allocation: One Family's Story - A father and son shared their family’s journey as they moved away from wealth creation with their concentrated position in the company that created the family wealth and moved to creating a wealth stewardship portfolio by creating “a 100-year plan”. The family addressed many self-identified challenges including: underperformance of active managers; difficulty in selecting successful managers over an extended period; high costs associated with global investing; difficulty in aligning the goals of managers and investors; home country bias limits; and behavioral biases.
- The Future of Currency: Risks and Opportunities in Cryptocurrency - Matt Hougan, Global Head of Research, Bitwise Asset Management provided a hype-free look at what cryptocurrencies are, how they work, and why some people are so bullish about their long-term potential. According to Matt, “There are a wide variety of opinions about the viability and sustainability of cryptocurrency. The bottom line is cryptocurrency is not going away and you need to understand the risks before investing.”
The Forum agenda included a combination of keynote presentations, specific-topic breakout sessions, and several opportunities to meet informally with other investors over breakfast, lunch, and in moderated peer dialogue discussions. Attendees included senior leadership in family offices, family members responsible for investment decisions, and Chief Investment Officers for Family Offices.
For more information on the 2018 FOX Autumn Global Investment Forum, please click here.