Investment strategies for family offices are expected to focus less on globalization and more on independent markets moving forward, says Welton Investment Partners’ senior managing director, William Marr.
“Many family offices have expressed the view that globalization has peaked, which is leading markets and regions to behave more independently,” Marr told Crain Currency. “This increase in dispersion is often the breeding ground for well-researched, disciplined alternative-investment managers.”
Welton, a hedge fund, sold a minority stake in its firm to Nile Capital in 2022. Hedge funds were picked as the top alternative-asset class of choice among family offices, wealth managers and other institutional investors, according to a February 2024 study from Carne Group. Another study last month from Clearwater Analytics found that 55% of investors plan to increase their allocation in alternative investments over the next five years.
“Within the alternative-investment spectrum, we are seeing family offices embracing private equity strategies to express growth, and private credit for income,” Marr said. “These allocations sit alongside public equity and public fixed-income holdings. For diversifiers, family offices continue to look at global macro hedge funds for noncorrelation and protection.”