Keeping it in the family

Family offices are notoriously averse to their assets suffering losses, and, as Edwin Wulfsohn and Rael Berelowitz, directors at Stenham Advisers argue, funds of hedge funds may provide the solution to long-term wealth preservation

It is one thing to create wealth, through, say, the sale of a family business. Although this should be liberating, preserving the newly realised wealth is quite another matter. Capital preservation, rather than the risky creation of more wealth, is the mantra of family offices. Such families seek investment advisors who seriously grasp that theirs is a stewardship role for the current and at least the next generation. The three key elements of wealth preservation are understanding and