The 7th Global Family Office Investment Summit hosted by Anthony Ritossa this week in Dubai attracted more than 400 global investors at the largest and most exclusive global family office gathering of all time held under the High Patronage of His Highness Sheikh Ahmed Al Maktoum. The attendees represented hundreds of billions of dollars in wealth and included billionaires, sheikhs, royal families and business leaders from around the world.
During the week, the group benefitted from the insights of 90 renowned speakers from around the world with unique expertise in key areas such as investment themes, family dynamics and future goals. Interestingly, however, two themes of paramount importance emerged as top of mind and dominated the conversations – Forex and Blockchain.
The message was clear across the board that family offices are tired of poor investment returns, high fees and tax inefficiencies and, as a result, have cut allocations to investment funds in favor of technology strategies. It is evident that today’s wealthy families prefer to invest directly in blockchain and with Forex managers that have the ability to out-perform and produce Alpha.
The keen interest in these tech-based strategies is due, in part, to interest from ‘Next Gen’ family members who include 20-30 year old’s who will eventually take over the family’s investment reigns. An October 2018 FT Wealth Report quoted Vikash Gupta, founder of multifamily office VAR Capital as saying, “Older family members are often comfortable in their own sector. Younger family members or the next generation are more open to partnering up with professional PE and VC houses so they can get exposure to interesting companies?.?.?.?[they] get excited by the opportunities in VC sector that are focused on the latest technology companies, such as AI or blockchain.”
The Forex Opportunity
Family offices have an impressive arsenal of $4 trillion available to invest and understand the importance of technology and the unique edge provided by the rare investment managers who know how to incorporate disruptive technology such as navigational algorithms, artificial intelligence, and sophisticated computer modeling to augment performance and safely navigate market volatility. Managers who fit that bill and who offer enticing transparency and liquidity are more than hard to find.
Forex trading strategies continue to expand in popularity when the strategy and manager is time proven the investment opportunity is especially compelling. Sophisticated suites of algorithmic technology and artificial intelligence tools make it possible to achieve exceptional results while managing the downside risk of trading. Ideally, the selected Forex manager should offer the family a high growth rate investment opportunity and have a multi-year track record.
The Blockchain Advantage
Blockchain companies are held to the same high standards and savvy family offices know how to spot the’ real deal’ among the many blockchain start-ups vying for investor attention. When it comes to blockchain and business, it is clear that the best blockchain opportunities deliver real world benefits.
Family offices who take a deep dive into blockchain are well-positioned to capitalize on this tremendous and timely opportunity to earn profits. There are numerous good blockchain companies with which to invest and the secret is conducting proper due diligence into their strategy, philosophy, team and track record.
The Bottom Line
The bottom line is that family offices today need to build a portfolio with an asymmetric return profile and definable and downside risk to capital invested. If the Dubai Summit is any indication, it is clear that Forex and blockchain will continue to lead the way as attractive investment opportunities for today’s substantial global family office investors.
For further information on how Mediatrix Capital helps family offices, visit www.mediatrixcapital.com or call 1-800-905-1006.