It seemed a match made in heaven - hedge funds and family
offices, naturally discreet partners with a strong mutual
attraction. The former sought long-term commitment; the latter
pined for uncorrelated returns.
But even the most outwardly perfect of couples can suffer a
rough patch, and that's what seems to have happened over the
past several months as family offices - big and small, single
and multiple, old and new - have questioned just how solid
their relationship with hedge funds is after the way some
managers have performed, and behaved, in recent months.
"From my perspective, the last year has been extremely
disappointing," says Max Schmid, a managing director at
London-based Fortune Asset Management, which advises on more
than $5 billion in assets, much of it belonging to wealthy
European families. "There were clearly managers just riding
waves without much skill, and when the wave broke, they broke
with it. It...