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...