What Are the Ridiculously Wealthy Doing With Their Money?
Hi, !
Learning a new skill and becoming an expert can be challenging. Take, for instance, learning how to take a wrist shot in hockey. You could follow the example of your neighbour, who plays in a men’s hockey league and boasts about his goal-scoring prowess. Or you could look to a local youth league player with a solid shot and emulate their technique. Another option is to study the best wrist shot in the world, perhaps from a PWHL or NHL star, and focus on mastering those skills. You could even hire their coaches to teach you.
When it comes to investments and securing our financial future, it’s crucial not to rely on the advice of amateurs or those still developing their skills. Instead, we should look to the major institutional investors and family offices—the ones with significant assets. These entities have access to unique investment opportunities and tend to make more informed, sustainable decisions.
Family offices, which cater to Ultra High Net Worth individuals with assets of $100 million or more, offer valuable insights into investment trends. According to a recent survey by Capden Wealth, family offices are increasingly favouring private equity over public funds, despite the strong performance of stock markets. Nearly half of the family offices surveyed plan to further increase their allocation to private equity in the coming months, with many holding significant cash reserves, known as “dry powder,” for investment opportunities. Dry powder is really just a fancy name for cash that is waiting to be invested and these family assets have on average 9% waiting for an attractive opportunity. Family offices cite better returns and lower volatility as key reasons for favouring private equity and other alternative asset classes.
The survey results align with our own investment strategies at Harbourfront. We are also exploring opportunities in alternative investments, seeking alternatives to traditional HISAs (High-Interest Savings Accounts), and considering investments in infrastructure, as well as expanding our portfolio with new asset managers in private equity and private credit.
Just as you wouldn’t model your wrist shot after Beer League Bob, but rather after a top professional, we base our investment approach on that of the most successful investors, aiming for consistently above-market returns with less volatility.
Lastly, a reminder that the RRSP deadline is THIS THURSDAY, February 29th. If you need assistance with last-minute contributions, our team is here to help!
Until next week, Happy Investing!
Trevor
