This article explains how Tax Advantaged Equity (TAE) portfolios are traded over time and illustrates how value is achieved over the course of the portfolio’s life. For a TAE portfolio with an objective to harvest available losses and minimize gains while managing risk, there will generally be a few major phases through the life of the portfolio, including loss maximization, loss harvesting and gain minimization, and maturity.
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The success of a private equity fund’s investment in a portfolio company largely hinges on the performance of the Chief Financial Officer (CFO). Initially chosen CFOs may be ideal for early goals, but market shifts might necessitate a change in CFO to adapt and succeed. Understanding the unique skills of different CFO archetypes is key for funds to make timely, effective leadership decisions.
Divestment is a complex decision, especially when passionate voices are actively seeking to influence change, take an ethical investing stance, and/or ensure that the capital of the institution they care about does not fund or profit from a cause or actions they oppose. This paper by Cambridge Associates offers considerations for how to manage calls for divestment and raises questions that need to be answered to respond clearly and effectively to divestment requests.
The private credit asset class has developed and evolved significantly since the Global Financial Crisis. Accounting for $1.6 trillion across a wide range of risk and return profiles, it is cementing its importance and value in investor portfolios. This paper by Cambridge Associates describes why private credit can be attractive in any market, outlines the various sub-asset classes, and discusses the construction of a private credit portfolio and its implementation into a portfolio.
The issue of concentrated low-basis holdings is a challenge that has vexed wealth managers and their clients for decades. Put simply, if a large majority of your wealth is concentrated in a single position, should you sell some of it and move the proceeds to a more diversified portfolio of investments? However, the sale position oftentimes carries enormous unrealized capital gains with a huge tax liability. But over the years, new ways of looking at the concentrated position have evolved to provide a more robust and meaningful solution.
For foreign families and individuals who are interested in investing in the United States, there are key factors to consider. In this 10-minute interview, attorney Ruben Diaz of Foley & Lardner joins Brian Lucareli to discuss in-bound investing and top-of-mind issues when helping clients through the process of investing into the U.S. from Latin American countries. Ruben spoke about the information required in order to help clients properly structure their investments into the U.S. and the planning process for inbound investments.
Investors are processing more data more rapidly than ever. For family offices, sticking to their principles and investing within a risk-adjusted framework has never been more important. With a greater number of opportunities, success will require families to reflect upon what has and has not worked, clarify the sectors or strategies where they have a differentiated, competitive advantage, and recognize more patience and thoughtful decision-making is required.
FOX’s annual Global Investment Survey was divided into two segments, launched in February and March 2023, respectively, to the FOX community. The surveys fielded until the end of April 2023. Please note that the 2023 FOX Global Investment Survey data pertains to investment activities and performance during calendar year 2022.
As we head into the second half of the year, questions surrounding the global economy and financial markets remain. Is the U.S. headed for a recession? Will there be secondary effects from divergent Global Central Bank policies? Does the 2024 political cycle matter? And importantly, how should family offices invest capital given the current and future global market dynamics?Join Fiducient Advisors’ Brad Long, CFA, Chief Investment Officer and Adam Newell, CFA, CFP, Director of Family Office Consulting, for their mid-year market updates and valuable investment insights.
Portfolio management for families of significant wealth is distinctly different than those with traditional wealth management needs. For these families, wealth typically exists in a much more complex ecosystem—among real estate investments, operating companies, or multiple generations, by way of example. These factors and other considerations are key to successful portfolio construction for private investors and wealthy families.