If you’re not worried, you should be worried, hedge fund manager Ray Dalio warned in a roundly mocked tweet earlier this month.
But that principle applies to family offices, which haven’t been overly stressed about the stock market crash, experts said.
“It’s actually surprisingly quiet” among those responsible for huge personal fortunes, Mercer’s Cara Williams told Institutional Investor Wednesday. “There hasn’t been a massive amount of panic. But this crash only justifies diversification across all asset classes.” And family offices are not diversified to the same extent as their institutional peers, such as pension funds and major nonprofits.
The propensity for, say, energy billionaires to invest directly in other energy start-ups and companies rather than across sectors and asset classes “is extremely widespread and extremely common,” said Williams, who leads Mercer’s family office consulting and investment unit.
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Author: Leanna Orr