In the Family Business magazine article “Why Do Wealthy Families Fail?” Alicia Giltinan, the Chief Financial Officer of Chasefield Capital, explores the various definitions of failure and offers guidance on how to mitigate adverse outcomes among families with substantial resources.
“Wealth can create a false sense of security that one doesn’t really need to create a budget, let alone adhere to it. The family business uses forecasting and budgets, but the family members may not,” said Giltinan.
A significant amount of family wealth comes in the form of multiple assets, but often, no one oversees the investments as a whole. “Each adviser may by doing his or her best to help the family make investment decisions the adviser believes are suitable. But absent one overriding investment policy statement for the family and a comprehensive portfolio summary from which to work, isolated investment decisions can create unnecessary risk,” explained Giltinan. One solution is to plan a family meeting so that everyone is on the same page about family resources. Giltinan also recommends that wealthy families develop an investment policy statement, which should include: investment objectives, time frame, risk tolerance, performance expectations, adviser responsibilities, asset class guidelines, and monitoring.
Harold Pine discusses in Foundation and Endowment magazine the impact of large losses in portfolios. He looks at how investors may not have a true picture of losses when using well recognized quantitative methods.
A discussion of our viewpoint on stocks.
Savvy investors understand having working knowledge of return forecasting is key when constructing portfolios. Still a hot and heavily debated topic is means variance modeling, which can be the most difficult to predict. Research has gotten better and there are new ideas for measuring returns. Managing Director of Chasefield Capital Harold Pine, authored the article, “The Difficulty in Return Forecasting, A Probabilistic Approach,” published in M&A Journal, an online magazine for leading law firms, investment banks, corporations and pension funds.
“We do not make the distinction between private equity and the M&A world, as the two are very connected from a valuation and return perspective,” Mr. Pine said. He suggests finding a useful tool that reasonably reflects the behaviors of the return and warns, taking a single deterministic approach can be potentially misleading. Mr. Pine details how the use of multiple platforms and tools will yield better investment decision when it comes to buying or selling.
Due to the low financial returns and high rate of monetary fluctuations experienced over the past 15 years, individuals with a net worth of $30 million or more are taking a closer look at their financial affairs. Managing Director of Chasefield Capital Harold Pine authored the article “Capital Trends for the Ultra-Wealthy,” published in Luxury Daily, to discuss effective capital trends that the ultra-wealthy can take into account when making investments.
One such trend is investing in a family office or multi-family offices. When experiencing long periods of low returns and occasional periods of high volatility, it is important to focus on unveiling hidden costs by being transparent with all the significant expenses. The desire for efficient services has encouraged the ultra-wealthy to begin seeking performance, customization, consolidation and oversight through a family office or multi-family offices, which offer cohesive, cost-efficient and collaborative platforms that put investments, financial planning and estate guidance under one roof. Investigating options thoroughly can be time-consuming but in the end, finding the right solution for the circumstances will be a worthwhile one.
After countless years of hard work, taking big risks and meeting obligations in an aggressive competitive environment, many entrepreneurs are left wondering what to do next after they have sold their business. Managing Director of Chasefield Capital Harold Pine authored the article, “You’ve Sold Your Business. Now What?” published in Entrepreneur magazine, which provides an effective blueprint for entrepreneurs who are searching for new opportunities to invest their proceeds effectively without taking time away from family, hobbies and the next stages of their lives.
Transitioning from a business owner to an investor is far more difficult than most entrepreneurs imagine. Taking that lump sum of cash and investing it to last a lifetime requires a different strategy and approach. By considering a family office with an independent professional management team, it can provide invaluable insight into strategies to preserve wealth, manage it responsibly, guide philanthropic endeavors and be there for subsequent generations to ensure preservation of capital investments.
We take a look at a the recent Fed policy change and market valuations.