Hot Investor Trends — Ep. 3: Protecting and Growing Wealth in Any Market: How Elite Investors Build Resilient Portfolios

This wealth manager reveals how their team designs balanced portfolios combining equities, bonds, and private investments — all under one structure.
Her top takeaway: prepare for the drawdown before it happens.

https://familyoffices.com/

Transcript

Welcome back to Hot Investor Trends. This episode focuses on risk management, how
smart investors protect before they grow and position for long -term resilience. I'm a
co -founder and partner at Beverly Hills Private Wealth. We are a boutique wealth
management firm specializing in high net worth, ultra -high net worth clients,
and looking to provide really a highly specialized and institutional level experience
through in -house portfolio management and sophisticated financial planning.
What we typically invest in, we've really looked at it as let's build a platform
for our clients, our investors. And we've done this in three different ways.
We have a chief investment officer who was the best investment that I think we've
ever made, and he manages an equity model that's made up of 70 approximately
different stocks, globally diversified across all caps, all sectors, which we think is
really important at a time when top 10 stocks in the SMP are almost 40%,
45 % of the S &Ps, TMT. So that's very important to us,
along with the mandate that no individual stock at the time of purchase can be more
than 3 % of the equity portion to avoid over concentration. On the fixed income
side, pretty similar. We are looking for investment grade bonds in fixed income,
more than 70 % of the fixed income products in our portfolio are a minus or above.
And then also looking for overlook special situations where we can still get in at
a place where we can find yields at 6 to 9%. And then most exciting for us right
now is in January, we launched our very own private fund, primarily for our clients.
So that's made up of private equity, private credit, secondaries. We're about to add
some distressed real estate, I believe.
So that's sort of the platform that we look at. So I'm not sure that we're
necessarily investing in a trend. I think we're more investing in a big picture.
And trends will sort of move in and out of that naturally. But for us, the big
picture is what's important. Let me see. The next question was preferred investment
structures. So we try to differentiate ourselves from other wealth managers by
investing directly in order to keep fees lower. That's one of the big draws of our
private fund for our clients especially. And then we customize at the account level
as well. So if you come in and you've got a huge holding of Microsoft, well,
that's also in our portfolio. Maybe we're going to reduce tech in a different way
to account for that. It's to be tax sensitive. We do aggressive tax loss harvesting
as well, and we're able to do all of this in -house.
And then, let's see, what else? We have the private fund, like I said. Great thing
about the private fund as well is we have it administrator who wraps everything in
one K -1 for us. So we're not getting multiple K -1s, which is really lovely at tax
time. And then we've also started doing sub -advisory. So our chief investment officer
has relationship with other advisors on different platforms, not on our
but still have a run ahead of them. And we're also rounding out the investments in
our special, or excuse me, select opportunities fund, looking specifically at
distressed real estate. And with one minute and three seconds left, most valuable one
million plus insight. Prepare for the drawdown before the drawdown happens.
Going into this year, knowing what we had coming in politically, the talk of the
tariffs, Nick reduced Canada exposure in our portfolio. He tweaked our portfolios to
make it what he believes is about 60 % tariff resilient. And it really worked in
our favor. When the market was at its trough in April, we only captured 42 % of
the downside. Clients couldn't believe they would call us saying, I was holding my
breath looking at my portfolio this morning, but you're telling me I'm still up 1%,
I'm still up 2%, or I'm only down 4%. And it avoided us having to have a lot of
difficult conversations. And I think also just reinforces the fact that ultimately we
are really looking to protect and grow our client's wealth. We're not looking to do
anything crazy. Sometimes trends can feel that way. Sometimes they end up,
you know, being the home run. I'd rather have a little bit of that. Thank you so
much to the Academy. Thank you. Nicely done. We'll have applause for Lisa.
Appreciate you listening. Coming up next, we explore the mindset difference between
building wealth and preserving it across generations.