Are Hedge Funds Prudent for Taxable Investors?Are Hedge Funds Prudent for Taxable Investors?

The couple had done well. Together, they’d started a business, built it and recently sold it to a strategic investor in a deal that netted them approximately $100 million in after-tax cash.

They weren’t comfortable investing this wealth themselves, so they hired an independent trustee and a third-party investment consultant to help them design a coordinated wealth plan. These advisors arranged meetings with wealth management firms that could both assist with investment management and offer trust company services.

One of the firms, a large trust bank, hosted an elegant lunch for the couple, their trustee and consultant. The firm brought in an impressive team that included the president of the trust division and the chief investment officer.