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A Summary of

Is That a Family Office in Your Pocket?

by
Packy McCormick
Not Boring
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Equi

  • Makes it easier to access financial markets
  • A hedge fund in the back with tech interface in the front
  • Equi identifies and invests in the world’s best fund managers
  • Ultra-high net worth individuals often have 50% of their portfolios in alternative investments
  • Diversifying portfolio with alternative investments has shown higher returns
  • Equi takes the family office model and combines it with tech to make investment decisions
    • The value of a portfolio they can offer you is well above $90 million but the way they invest pools of people’s money is lower

Rebuilding a modern portfolio

  • The 60/40 approach of investing has failed to show returns significant enough
    • If you invest in treasuries you will have your returns outpaced by inflation
  • Until very recently it was very difficult to access alternative investments
  • University endowments have moved to a portfolio of 50% alternative investments
    • Alternatives offer higher returns than traditional investments
    • Provides diversification for a portfolio

Meet Equi

  • Equi was born out of its founders champagne problem
    • The founders found that funds would not accept their offer of investment between 1-5 million dollars 
  • Equi looks to solve the hollowing of the middle class in America
    • Retiring Americans are losing buying power when they retire

How Equi invests

  • Identify managers in funds that are returning well and are involved in industries like private credit rather than equities
  • The goal is to identify the managers with the highest performance and lowest risk on investment through tracking data over 100 month periods
  • Three strategies:
    • Balanced
    • Growth
    • Income-oriented

Democratizing access to financial markets

  • Instead of paying for marketing, they are using a YouTube channel
    • Have received over $136 million in AUM
  • Allow individual investors, in a few years, to have access to the alternative investments that ultra-high net worth individuals do
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