Forbes – There are more single-family offices than ever before and, on average, each one is controlling larger pools of assets than in the past. Hedge funds continue to be a core investment option for many of them even though they\u2019re increasingly being scrutinized.<\/p>\n
Based on recent surveys of the executive directors at single-family offices, it\u2019s clear that while they\u2019re certainly not abandoning investing in hedge funds, they\u2019re changing how they making selection decisions as well as how they\u2019re working with them ongoing. According to Hannah Shaw Grove, principal of boutique consultancy HSGrove LLC and a director of the Hedge Fund Association\u2019s HNW Advisory board, \u201cFamily offices have long had serious purchasing power and a penchant for institutional pricing, but this current trend toward fee negotiation is more likely a reflection of the sheer volume of hedge fund offerings and the recent underperformance.\u201d<\/p>\n