In a recent article published by Fundfire, Delegate Advisor’s managing partner, Andrew Hart, is cited amongst industry experts discussing the recent trend of family offices taking on more risk while continuing to embrace illiquid alternative investments. According to a recent report released by Campden Research and UBS, long-term family office strategies are shifting allocations toward hedge funds and riskier illiquid assets.
The article delves into reasons behind this trend, such as longer time horizons, which allow family offices to allocate large portions of portfolios to alternative investments, as well as potential pros and cons. Mr. Hart cites that concerns about equity valuations and bond market liquidity that have lead the firm to taking a cautious approach. "There is a potential for real disconnect in the markets if a lot of retail investors decide to run for the exits at the same time.”
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