information because when people understand what information is public, they are much less naive and less susceptible to manipulations based on the use of personal data.”


INVESTMENT


TRENDS This year (2018) saw family offices increase their appetite for alternative investments, increasing their allocations in private equity, hedge funds and real estate to 46% of their portfolios and half plan to invest more. However, Fred Fruitman, managing director


of Loeb Holding Corporation—the Loeb family office’s investment arm—warns family offices not to succumb to “herd instincts” by piling into the alternative investment space just


because everyone else is doing it. “I find this trend concerning—I don’t think


that it’s driven by hard analysis. They are doing it because everyone else is doing it and family offices will continue to do it until they get burned and realise that 46% is too big an allocation for it—maintaining a balanced portfolio is much wiser.” Co-investing, which one family office in


North America described as “one of the big fashions of the family office world at the moment”, is also trending among family offices, with 92% of direct co-investment deals meeting or exceeding their performance expectations. Despite the positive outcomes, Rebecca


Gooch, director of research at Campden Wealth, says families need to proceed with caution when looking to invest more into co-investment deals.


ISSUE 75 SUPPLEMENT | 2019


CAMPDENFB.COM


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