you didn’t come the wrong way at all just super rich person on AF. Use any and all resources you have to get ahead is my motto. If that happens to be your family’s wealth, ties, and/or last name…all fair game to me!
Man I was being serious. Your posts always seem grounded and your situation never seems to slow your hustle. None of us start at the same point, but I respect how you still get after it. Seem like a cool guy to me
Just park your FO money in SPY and go to the beach. Amiright?
beaches are closed broseph
change the area code then
Actually, is sort of a real question. If my family started a fund like that (which they really should, but let’s not go into that), I would immediately put almost all of it in passive investments. I cannot imagine myself managing that fund full time, let alone staff an office. So, what would you do with this “family office”?
All in all, it’s mainly active asset allocation with some interest in actively managing some direct real estate and private investments since we have operational and deal experience across a few businesses, as well as, a fairly decent network to source opportunities. Outside of the direct stuff, asset allocation still requires a good deal of work, particularly in any minority PE related investments since you have to interview a lot of funds. We also need to factor in the state of the business cycle, which to me suggests being more conservative. I’m basically following the Yale model to active allocation:
For public market access though, I am dedicating +90% of that allocation to low cost index funds and monitoring only a couple times a year. The remainder may go to hedge funds or if we see a real bargain then we might allocate 0.5-1% to that specific security.
do you ever sell the low-cost index fund or is it truly passive buy and hold?
Mostly would be adjusting allocations or if we wanted to direct more funds to a large private investment. That said, if we believed there was going to be a large turn in the cycle, then we might sell to hold cash or vice-versa.
CFABB is one chill cat