skip to Main Content

You are going to hear more and more about ‘gamma’. This is what a family office does. This article featured in the Journal of Retirement by David Blanchett and Paul Kaplan of Morningstar provides excellent detail on the concept.

“[I]nvestors arguably spend the most time and effort on selecting ”good” investment funds/managers—the so called alpha decision—as well as the asset allocation, or beta, decision. However, alpha and beta are just two elements of a myriad of important financial planning decisions for the average investor, many of which can have a far more significant impact on retirement income. [Gamma] is designed to quantify the additional value that can be achieved by an individual investor from making more intelligent financial planning decisions.”

Click here to read the article.

Tom McCullough

Tom McCullough is Chairman and CEO of Northwood Family Office, which looks after the investments and integrated financial affairs of wealthy families with $10 million or more. He teaches ‘The Management of Private Wealth’ in the MBA program at the University of Toronto’s Rotman School of Management, and is also co-author of the books, Family Wealth Management and Wealth of Wisdom: The Top 50 Questions Wealthy Families Ask.

Back To Top
×Close search