The Family Office Playbook: Core Beliefs and Key Asset Allocation Recommendations Summary

In this paper, Cara Lafond explores family office characteristics and makes recommendations for asset allocation strategies that ensure growth of assets and preservation of capital and purchasing power, two goals that have been identified as important to most family offices. She emphasizes the importance of downtown risk mitigation and argues that seeking consistent returns and avoiding losses is more important than pursuing outsized gains.

The author recommends that as taxable investors with a lengthy time horizon, family offices should consider strategies that focus on taking long term positions in companies that allocate capital wisely as these often have favorable tax treatment and fit within the long term framework. Finally, Ms. Lafond argues that integrating alternatives into the overall asset allocation structure and evaluating them against traditional return drivers and risk exposures can provide clarity about the roles they play in the portfolio, and result in better asset allocation choices.