Red Hook’s core strength is investment advice. Every wealthy family’s assets have a history and often a good story. Our role is to put these important assets into a personalized, coordinated plan based on the family’s values, goals, relationships, and intended legacy. The first thing that we do for a new client is organize existing assets to evaluate for risk and diversification. We discuss risk, return, and time horizon to establish a risk profile. From there, we create a thoughtful plan, considering any required transition and taxes.
Red Hook’s core investment beliefs are that a family’s wealth should be well-diversified with much of it liquid. We review each client’s portfolio for both these factors.
There is nothing better to increase wealth than keeping your costs low. Fees and taxes can be a significant drag on returns. This means paying advisors for the value they provide and minimizing taxable gains or income, when possible. More specifically, with respect to stocks and bonds, not overpaying for stock picking or market timing, and being cognizant of taxes when rebalancing or raising funds.
Red Hook believes in broad diversification of both stocks and bonds to protect wealth and smooth out long term returns. In taxable accounts, we do our best to diversify around any legacy positions.
Most families have investments in illiquid assets. The most prevalent example is the equity in a home, but there are many other ways families hold illiquid investments, including partial ownership in a private company and investments in real estate deals, venture capital funds, hedge funds, or early-stage companies. At Red Hook, these investments are an integral component of a family’s risk assessment, which informs any necessary transition. We help families understand the appropriate allocation for these types of investments and evaluate and make introductions for future investment opportunities.