Tremendous wealth usually comes from concentrated sources: companies that succeeded after blood, sweat and tears. These concentrations of wealth create a different needs for such investors. While other investor focus more of things such as risk or return, the overarching need for investors having a dangerously concentrated position, is to diversify away from that position with the available funds. Gravity, having pioneering the diversification space offers the only solution to such investors that can more optimally allocate their liquid capital markets portfolio in a manner that accounts for and directly diversifies against that concentrated position. It does not matter if such a position is a publicly traded security or not.
The most simple case of this:
Jane is a co-founder in a high tech web security company called Mega tech. A decade later another larger public company acquires Megatech for both cash and equity. Jane receives 25 million in cash and has another 50 million in Megatech stock. When designing the right portfolio for Jane it might be obvious that she would not be advised to purchase other stocks in web security companies. But this is a dramatic oversimplification. Jane and her advisers have tens of thousands of stocks and bonds, and fund and private securities to invest with. Because her liquid investment portfolio represents the smaller part of her worth it becomes more critical to squeeze out the maximum diversification available. This is too complicated to model in excel or based on loose intuitions of the adviser.
Gravity technologies can explicitly help the investor balance around that concentrated position, arriving at a optimal portfolio still accounting for the strategies, objective, preferences and vehicles of the investor and here advisers.
Gravity works with family offices in different ways:
- Consulting Basis
- Access to our technology
- As a thin fee overlay manager
- As a sleeve provider for various strategies