Tag Archives: Investment Management

Business Articles, Family Offices, Interviews

Mr. Family Office | On Twitter

As an Investment Adviser, Banker, or Investment Professional, you will discover other interesting stories from professionals in our investment space. Today’s post regards a confidential Adviser, who posts fascinating content about the often-misunderstood world of Ultra High Net Worth Family Offices. He is the King of Twitter’s Family Office Investment Space, the always generous and astute Mr. Family Office X- Account.

While preparing for this interview I knew I would have to give up control, as I don’t want to put anyone’s job or livelihood at stake. After all, I am still new to the community, and I need to build trust and demonstrate my strict competency with professional leaders such as Mr. Family Office. We must keep the personal Identity of Mr Family Office hidden. We have rules in this small space, just like serving in secret areas of the Military. So, in the small world of Ultra High Net Worth Family Offices, trust is earned, and reputation is everything. The rules are simple, bluntly spoken, and strictly enforced… “KEEP YOUR MOUTH SHUT ABOUT YOUR FAMILY AND WORK”. 

Confidentiality and Discretion

Mr. Family Office is an X account, (Twitter) and has grown to over thirty thousand followers and is the undisputed authority in the Family Office space on X. He generously educates his Investment Professionals and even Entrepreneurs, who have become Centi-millionaires who want to open their own Family Offices. His account has been an incredible resource for me, as a growing Venture Capital Investor and Qualified Adviser and Entrepreneur. Here is a photo of his X Account. 

Mr. Family Office

Mr. Family Office is a Twitter or X account and has grown to over 30 thousand Followers and is the undisputed authority in the Family Office space on X. He generously educates his fellow Investment Professionals and even Entrepreneurs who have had an exit and have become Centi-Millionaires who want to open their own Family Offices. His account has been an incredible resource for me as a growing Venture Capital Investor and Qualified Adviser and Entrepreneur. Here is a photo of his X Account.

The Community Network of Family Offices

Since the Family Office or Space of Ultra High Net Worth Individuals is a small, elite community, another person I want to introduce and just had to include later in this post is a friend, Jorge Nikaido from Grupo Salinas in Mexico. 

Jorge is the trusted Right-Hand Man or “Chief of Staff” for a bold and honorable Mexican Business Magnate named Don Ricardo Salinas Pliego. And being a right-hand man of a Business Entrepreneur doing great, philanthropic projects for your community, earns you a spot in our group of Trusted Family and Friends. This is why I just had to include this Professional Leader later on in this article. More about Jorge later. 

So, without further delay, let’s jump into the interview with Mr. Family Office. 

1.Thank you for agreeing to be here with me and writing this post Mr. Family Office, When you first started your Twitter account Mr. Family Office did you feel any apprehension you were going to get pushback from our Adviser and Banker community because we have a Professional Duty to keep things secretive and confidential in our Investment world?

“Thanks Jameson, it’s good to meet you! Confidentiality and discretion are obviously fundamental in my world and it’s always my first thought when tweeting about any topic. I never tweet specific details about the family I represent or other family offices I work with. I would not break trust in this way. This can be limiting, there is a lot that I could share. But in fact there is plenty to talk about whether it’s general stories, my own stories or insights from the sector.“

“The feedback I get from advisors and bankers has been very positive so I think I get the balance about right. ” 

2. It’s Fascinating to others out there in the World “How Family Offices Work” what was it like building your twitter account so others could see into this secretive space?

“It’s a lot of fun! I’ve met some very interesting people who I wouldn’t have met otherwise and I’m learning every day.  I think family offices are slowly opening up, so the Twitter account is riding the wave of more transparency.  “

3. How did you feel when you saw a community of Advisers, Investors, and Entrepreneurs being built around your Family Office Guy Account? What excited you about this and where do you see it going?

“It’s great to see. I started tweeting without any expectations at all, so I’m delighted to see the community that has grown around the account.” 

As to where it’s going… good question. I’m focusing on the newsletter at the moment, but also discussing a few ideas with others from the family office world. Watch this space. 

His NEWSLETTER LINK HERE:

https://mrs-newsletter-6afd08.beehiiv.com/

4. Not many people know Investment Partner has ownership in a Investment Advisory Firm with many Advisers as part of his Family Office, can you tell us about the spectrum “Small to Large Family offices you have seen as a Professional?

It’s an age old question – how much is enough for a family office. Family offices have become something of a status symbol in recent years. The SFO Alliance requires that members have at least $400 million AUM, I feel that this is a good minimum benchmark – but even at that level, the core team is going to be pretty small. 

5. Do you feel your Twitter presence is helping to demystify the secretive and sensitive world of family offices and Billionaire investment management? “I hope so! “

SFO Family Office Website

Did you catch my latest article “Why VC Firms are turning to Investment Advisers”

Interview Continued

6.Have you ever been worried anyone would find out who you are? And how do you stay safe? ( Stupid question. Sorry No worries if it crosses the line. Don’t answer if it’s stupid. ) 🙂 

“Quite a few people know who I am… but it’s safe to say that the mystery is far more interesting than the reality! As the account has grown, there have been contributions from various people in the sector, so it’s fair to say that there is more than one Mr (or Mrs) Family Office” 

7.Has building your Family Office Acct. on twitter/X given you access to opportunities, relationships, and Investment Transactions you wouldn’t otherwise have access to? Do you have a short example?

“I have not sourced deals through Twitter yet, but I have connected with a bunch of family offices and FO professionals. ”   

8. What does the continued growth of Family Office Account look like in 10 years?

“I’m certainly not looking 10 years ahead!  Twitter under Elon Musk can be pretty wild, so you never quite know where you are! As I said, my focus for the immediate future is on collaborating with other contributors and building the newsletter.”  

9. Can you share more about your Process for choosing Content and topics for your Posts of Family Offices?

“I like to mix things up.. I generally tweet about stuff I find funny or interesting. The inspiration comes from day-to-day work or from what I read. I think it’s important to have a balance between serious and non-serious. Overall, I don’t take myself too seriously… I think people like that about the account.” 

10. What is the largest family office and (AUM) you have seen as a Family Office Expert?

“The largest I have worked with has been several billion dollars. But there’s always a bigger fish.” 

11. Is there anything you can share that may be controversial about you building Mr. Family Office?

“Being anonymous on Twitter can be controversial in itself. But once people figure out that I’m not hawking courses or selling sketchy deals they tend to relax. “

12. How do aspiring Professional CFP’s, CFA’s and Investment Advisors get into the Family Office space as a career?

“Look out for some upcoming newsletters!  I am planning to write a lot more on careers in family offices in the coming weeks.“

End of Interview questions.

This certainly was an interesting interview and opportunity. I would like, to take this opportunity to personally Thank Mr. Family Office for his time, generosity, and willingness, to help educate all my readers and myself about the World of Family Offices. It’s a look into a world and a view many professionals do not get to see, now they do have a little view into this discretionary world. This is very insightful and helpful. Thank you, Sir! It’s very professional of Mr. Family Office to help me as a part-time Journalist, grow with another interesting interview into our world of High Finance and Investing. Thank you again, Mr. Family Office. 

Grupo Salina’s “Chief Of Staff” Jorge Nikaido

My friends in life are special and keeping their “Trust” is everything to me. So, I hope you understand I would never betray the confidence of anyone who does not wish to be publicly identified or participate in my posts. However, Don Ricardo and Jorge Nikaido are celebrities in Mexico and Latin America. Even so, I informed Jorge, that I was going to mention him in my article with Mr. Family Office. He deserves a little love and recognition considering he is always selflessly serving family and friends of ours. 

Feel Free To Follow Jorge Nikaido on X-HERE

While preparing for this post and interview, I immediately thought ‘Who else do I know who is in our small world?’ And it hit me! My good friend, who I am connected to on X, (Twitter) and is Mexican Billionaire Don Ricardo Salina’s Pliego’s Right Hand Man, Sénior Jorge Nikaido.

Jorge is known as “THE FIXER” in the life and Family Office of Don Ricardo’s Salinas Pliego Empire in Mexico. So it’s only natural I would give a quick mention to him in my Post here with Mr. Family Office. To my Professional Friend in Mexico City who is always helpful and ready to assist and advise his Family and Friends like Me and Mr. Family Office? Salud Sénior Nikaido! I can’t wait to interview you soon and drop in to see you in Mexico City in the near future. Thank you.

Thank you for reading this week’s article and post about Mr. Family Office. As I continue to find new and interesting stories from High Finance, Investing and the Community of Business, I would like to leave you with this thought from Don Ricardo Salina who I consider an Honorable Community Leader, who cares about his friends and family. Don Ricardo says to us… 

“To me, wealth is the peace of mind you have, your family, your friends, your colleagues. Everything else is just money, and it really is funny how people pay so much attention to that.”

Follow Don Ricardo Salinas Pliego here.

If you found this Article, and Interview Post interesting, please share and comment on your Social Platforms. If you’re taking time out of your busy day to read this post, we greatly appreciate all who find this interview insightful, informative and interesting.

Thank you for reading.
JS

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Business Articles, Investing, Investment Vehicles

“Exchange Traded Fund” ETF Basics

Many Business professionals would be shocked to find out that a basic Exchange Traded Fund on the NASDAQ, New York Stock Exchange or on Japans 225 funds that make up the Nekkei Index are all either UIT’s or Open-Ended Funds (Mutual Funds). This article’s purpose is meant to identify and educate more executive business leaders about ETF’s you likely see daily listed on TV or on the many Stock exchanges.

Before we are able to begin listing the different key components that make a Exchange Traded Fund. It’s a good idea if I share some basics to help you understand the ETF’s are complex Financial Vehicles. And for today’s article we will be touching on UIT’s, and Open-Ended Funds. Because that is what the majority of ETF’s are! Unit Investment Trusts and Open-Ended Funds. Interesting stuff right? Lets breakdown the basics of UIT’s and Open-Ended Funds.

Unit Investment Trust “UIT”

What is a Unit Investment Trust? Great question! According to FINRA‘s Website:

“Unit investment trusts, or UITs, fall in the same category as mutual funds and closed-end funds. All three are investment companies, which means they pool money from many investors and invest it based on specific investment goals. The key difference with UITs, however, is once a UIT sets its portfolio, it remains the same for the life of the fund (barring any major corporate events, such as a merger or bankruptcy proceeding) and the term is fixed.”

Investment Company Act of 1940

The key to understanding ETF’s is the fact all ETF’s are Investment companies. If I share more descriptively. A ETF is a Pool of Money that has been legally established as an Investment Company. Now we need to dive slightly deeper into what is “The Investment Company Act of 1940?” The S.E.C. Securities and Exchange Commission. The S.E.C. states on it’s website :

Additionally The Act was signed in to law by President Franklin D. Rosevelt who felt the need for Regulation after the Stock Market Crash of 1929 destroyed so many and especially after the Great Depression left its mark on America’s tattered Finances. The biggest thing I would like to leave you with to know and recognize about the Investment Company Act of 1940 is the fact this Law is a regulatory framework for retail investment products and vehicles. Most importantly the Act leaves Fund Managers and Financiers with three categories of Investment Companies to make offerings. These Company categories are “Unit Investment Trusts” UIT’s, (Mutual Funds) Open-Ended Management Investment Funds and Closed Ended Management Investment Funds. It’s very important to discern the Requirements for Investment Companies are based on their categorization and offerings of Investment products or vehicles.

Open-Ended Management Investment Fund

All a Open-Ended Management Investment Fund really is in most cases is a Mutual Fund! It’s very simple. A collection of Securities or Investments organized into a Pooled Investment Vehicle as a Investment Company. Here are some facts about Mutual Funds. An Open-Ended Fund continuously makes new Shares available to the Public for purchase. These funds are professionally managed and often are able to negotiate and procure Investment vehicles at a discounted price that is not available to Retail Investors. Most Retirement Funds and Retirement Accounts prefer the ease and efficiency of Mutual Funds for Investment Vehicles. Open-Ended Funds can be Growth Oriented, or even Mixed with Alternative investments used as Products inside the Fund. And this is why they make a excellent vehicle for Exchange Traded Funds.

Exchange Traded Funds

By now I think your catching on to the fact Exchange Traded Funds can take many forms or basically be a Investment Company formed into one of three categories Unit Investment Trusts, Open-Ended Funds, Closed Ended-Funds. It is remarkable that when you breakdown the basics of “What a ETF is?” you find that most Exchange Traded Funds are a unmanaged UIT or a Mutual Fund. I do hope you learned some things reading this week’s article. And in conclusion stay tuned! I feel it’s only fair for me to revisit expand on Closed-Ended Investment Management Companies in the near future. But for today? After doing some heavy studying. I felt it was really interesting to write about the fact that 70% of the ETF’s in the OTC and Big Blue Chip Markets? Are UIT’s and Open-Ended Funds are just Mutual Funds. I hope you found this article interesting and educational. This was something I felt could be useful and I felt it would make for a great little article. In conclusion. I would say, stay tuned. Big NEWS next coming week. Thanks for stopping by. Please feel free to contact me. HERE.

Godspeed

JS

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Business Articles, Investing

Howard Marks 6 Investing Principles

Recently, I was listening to Oaktree Capital’s Co-Founder Howard Marks, it was clear I needed to pull up my notes and write down these 6 Investing Principles that give Oaktree’s Team an Investing Edge in the Market.

Like most value investors we all know the steps of using Benjamin Graham’s strategy from the Book Intelligent Investor when valuing a Stock or Investment that is trading at a steep discount. Well like Graham, Mr. Howard Marks puts his twist and strategy to work while adhering to a few universal basics that Graham has taught us all as Value Investors. It is said that when Mr. Marks writes an Annual Letter, or his famous Yearly Memo and releases it, Warren Buffett stops what he is doing and reads it. 

During an interview recently, Mr. Marks shared “I wrote my yearly memo for nearly twelve years and knew that not many people would read it, but one day after the fifteenth year or so, it basically became an overnight success”. That gives me hope that my little Investment Blog might one day be as interesting as Mr. Howard Mark’s Annual Memos.  

These Principles Guide Our Investment Process

  • Risk Control: Managing risk should be an Investment Management’s Greatest Investment Objective. Without managing risk through extensive diligence and heavy research and planning, our investment thesis may be unproven. 
  • Consistency: When thinking about making Bad Investments to knocking one out of the park like a baseball player, an Investor must be consistent with the performance of their investments. On a scale of 1-10, it’s great to be hitting home runs with Investments that always win, but when things go bad, and they often do with unforeseen risks with Investments, it’s better to be averaging a success rate range in the upper middle of 3-6 max, and not allowing the bad beats of Bad Investments to bring down your Median Average of Consistency. This is very important.  
  • Be selective and look inside the less efficient markets for opportunities: Most markets are highly efficient, but there are places within markets where efficiency is lacking. Those are the spaces where you will be able to apply the Value Investor Graham Basics and WIN! Finding Investments that are “cheap” and look over-leveraged, may be exactly what you have been looking for to apply the skills we have learned over the years. Marks says you will find deals in Emerging Markets where information is not as transparent and available.   
  • Focus on a high degree of Specialization: Mr. Marks says, “Our people at Oaktree do a few things well. We are not Generalists”. 
  • Investment decisions are not driven by Macro Forecasts: Don’t allow the wind blowing over the markets to catch your sails and take you off course to faraway lands. We are Fundamental Analysts; we use the Bottom-Up Strategy. 
  • We are not Market Timers: Mr. Marks emphasizes, “If it’s cheap today, we buy it! We don’t need to wait six months and see if it will be cheaper. That makes no sense”. I tend to agree with Mr. Marks. When you’re looking for investments, your thesis is proven correct or it’s not. Apply the Rules and Skills we have been taught. 

Did you catch my last Article on Commercial Real Estate HERE.

Additional notes from Mr. Marks that are relevant to Investment Management and Investing for Success:

  • “You can’t predict, but you can prepare”. 
  • “Having a large number of Good Investments is our Mantra”. 
  • “Find good companies with correctable Bad Balance Sheets”. 
  • “Distressed Debt holds opportunities”. 
  • “Find good companies that have fallen on hard times”. 
  • “Look for companies with good management, with Too Much Debt”. 
  • “How do we fix this?” 
  • “Our Credit committee during the bankruptcy process can fix and raise the value. We receive profits from our efforts”. 
  • “We reject onerous Debts”. 
  • “We are not turnaround artists”. 
  • “All we focus on is Senior Secured Debt Obligations”.

In the end, our team avoids Losers and Bad Companies! 

In Conclusion

In conclusion to this week’s post on Investing Philosophy, if you adhere to and adopt the unique and proven principles in this post for your own purposes, you will likely be happy with the results. I do hope you learned something from Mr. Howard Mark’s Investing Principles. 

Feel free to share today’s article. With that, I thank you for stopping by and reading. And I hope you will come back and visit my Investment Blog soon.

Godspeed.

JS

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