Despite recent market fluctuations driven by new tariffs, family offices remain largely unfazed, according to their advisers. While they aren’t rushing to sell off assets, they’re also not aggressively buying into lower prices.
Family offices typically focus on long-term investments, but ongoing uncertainty around tariffs and government policies has led many to slow down their deal-making. On Thursday, the S&P 500 dropped 1.3%, contributing to a broader 3% decline across major indices for the week, following the implementation of tariffs on Mexico, Canada, and China.
Rather than making impulsive investment decisions, many ultra-wealthy investors are holding off on major moves until there is more clarity on policy direction. Michael Zeuner, managing partner at WE Family Offices, noted that most families are maintaining a diversified approach and preserving liquidity until they gain a clearer outlook.
A chief investment officer at one family office mentioned they were assessing a private investment with ties to Mexico but decided to pause until there’s more certainty around policy changes.
While tariffs have unsettled markets, high-net-worth investors are well-positioned to absorb volatility. Charlie Garcia, founder of R360, explained that centimillionaires take a long-term perspective, focusing on decades rather than short-term market movements. Some investors have made slight portfolio adjustments, such as increasing exposure to U.S. steel and aluminum producers through private equity and diversified funds.
Deepak Puri, Chief Investment Officer for Deutsche Bank’s private banking division in the Americas, said that while some clients worry about a potential bear market, Deutsche Bank doesn’t foresee one. Others are inquiring about safe-haven investments like bonds and gold.
UBS senior portfolio manager Jason Katz observed that reactions to tariffs vary based on political views, influencing the types of questions investors ask.
For some ultra-wealthy clients, the uncertainty is more concerning than the actual market impact. Elliot Dornbusch, CEO of CV Advisors, which oversees $13 billion in assets, noted that clients with Latin American business interests are particularly affected. While their investment portfolios remain steady, their main concern is the unpredictability of future policy shifts.
“We’re taking it one day at a time,” Dornbusch said.
