Consistency in investments. #familyoffice #investment
In this brief discussion, Speaker A argues that a family office can achieve returns exceeding 10% with relatively low risk and good liquidity by allocating 100% of its portfolio to alternative investments, completely avoiding public market exposure. He notes that while the average family office holds about 45% in alternatives, this particular office has taken the extreme of full allocation, which he sees as a growing trend. Comparing this strategy to the S&P 500, he points out that the S&P delivers similar 10% returns but with much higher volatility, especially highlighted by the 2022 market decline of roughly 20%. In contrast, the alternative‑only portfolio delivered steady 10% returns in 2021, 2022, and 2023, showing resilience and consistency. Speaker B concurs, affirming the positive performance and the satisfaction of the family office with these results.
