Invest Like Institutions: Barron’s Insights on Emotionless Strategies and the Rise of Alternatives in Wealth Management

By: Logan Henderson | Published: 11/09/2023
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Barron’s recently published an opinion piece by Catherine Keating, global head of BNY Mellon Wealth Management. In the article, she once again makes the case that individuals should be investing like institutions – a point we’ve made many times ourselves, and one of the key reasons we founded Gridline.

The decline in listed publicly traded companies, the length of time companies are staying private, and bank reforms on lending all underscore the importance of increasing allocations to alternatives for generating returns and accumulating wealth. 

The other characteristic that gives a leg up to institutional investors? Emotion…or lack thereof. Keating argues that just as institutions invest according to their investment policy statement (IPS), individual investors should do the same. Set your allocation targets, invest accordingly until you hit them, and then maintain for the long-term.

In essence, an investment policy acts as a roadmap for investing, providing a structured approach that reduces the influence of emotions. We are well aware that personal finances and wealth are deeply intertwined with our sense of identity, making them among the most emotionally charged aspects of our lives. Stay informed but not emotionally reactive. Engage in informed research about market trends, economic developments, and your investment portfolio, but avoid making impulsive decisions based on fear or panic. 

It’s crucial to remember that time in the market is often more important than timing the market!

By focusing on long-term goals and rational decision-making, an investment policy helps investors make sound investment choices and achieve their financial objectives over the long term.

As Keating states, there is much work to be done by both wealth managers and the alternatives industry to make these types of investments available to more investors. We think we’re contributing, building a platform that brings both transparency and efficiency to private market investing. 

-Logan Henderson, Founder and CEO

You’re Invited

NYC Central Park Walking Tour & Networking
  • Thursday, November 16th, 2023
  • 11 am ET
  • Artist’s Gate at 59th Street & Central Park South, Central Park, NYC

If you or anyone in your network are in the New York area, we invite you to join us for casual networking and a walking tour of Central Park hosted by our own Greg Kaufmann, who served as a volunteer tour guide for the Central Park Conservancy for 10 years. Learn about the park’s history, ecology, geology, and design, while networking between stops.

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To view and download full details of the funds on our platform and in future emails like these, visit app.gridline.co/signup and answer a few quick questions that allow us to verify your identity and learn about your allocation strategy. There is no cost or commitment to create an account on Gridline.

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