Swiss family office says investors` current priority is portfolio protection....

Stonehage is one of the biggest independent family offices in the world, with 337 employees of which 125 are in Neuchatel (Switzerland). The firm plans to open an office in Geneva in the spring of 2009.

One of its directors, Frédéric Carbonnier, explained to Swiss paper Le Temps, that during the current turbulences, the aim of his clients – mainly families of international entrepreneurs – was to primarily protect their portfolio. Stonehage’s first task was to redeem from risky positions, stocks and hedge funds with high leverage. “A lot of clients are worried about the solidity of depositary banks,” said Mr. Carbonnier to Le Temps. “The most sensitive ones have moved to other banks or diversified so that they don’t have more than 10% of their assets in any one bank.” Protecting the portfolio entails the purchase of money market funds. Most of his clients’ portfolios, apart from stocks in companies and in real estate, are very liquid.

Unlike Warren Buffet, whose investment horizon is 25 to 30 years, and who is investing right now, most investors will wait until confidence comes back before getting started again. “To do that, a temporary filling-up of interbank markets is necessary,” he said. “G8’s authorities must speak in unity and set up the rules of the game that can recreate trusting exchanges between players. Managing the crisis nationally is not enough. » The consensus must be global.

He suggested that ......................

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Swiss family office says investors` current priority is portfolio protection....