Latest / The High Net Worth Podcast with Fexingo: Wealth Management, Tax Strategy, and Affluent Finance
How Family Offices Use Derivatives For Risk Management
Most high-net-worth families treat derivatives as speculative tools for hedge funds, but sophisticated family offices use them differently. In this episode, we look at how the Rockefeller family office structure utilizes options strategies to hedge against equity concentration risk in their core holdings. We break down the specific mechanics of collar strategies and tail-risk hedging using VIX calls, explaining why these instruments are insurance policies rather than bets. We also examine the tax implications of mark-to-market accounting on derivatives compared to traditional buy-and-hold…
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