Notes
1 This portion of the chapter is adapted from Greycourt White Paper No. 38: Open Architecture as a Disruptive Business Model (2006), available at www.Greycourt.com. The paper appeared in slightly different form in The NMS Exchange 7, no. 1(August 2006): 7, and was subsequently published as Chapter 8 in A. Srikant and C. Anand, eds., Disruptive Technologies: Concepts and Application (Hyderabad, India: Icfai University Press, 2006).
2 Clayton Christensen, Sally Aaron, and William Clark, “Disruption in Education,” from the EDUCAUSE 2001 Forum for the Future of Higher Education.
3 This portion of the chapter is adapted from Greycourt White Paper No. 49: The Outsourced CIO Model (2010), available at www.Greycourt.com. The paper was subsequently published, in slightly different form, as “The Outsourced Chief Investment Officer,” Investments & Wealth Monitor Featured Article (May/June 2011). Special thanks to Margaret Towle for her contributions to the original paper.
4 A recent NACUBO-Commonfund study of smaller endowments indicates that only 11 percent of funds between $100 million and $500 million employed in-house CIOs. See 2009 NACUBO-Commonfund Study of Endowment Results. The percentage for families is far lower.
5 “The New Gatekeepers: Winning Business Models for Investment Outsourcing,” (Casey Quirk, 2008).
6 “Inaugural 2009 Single-Family Office Study,” Family Wealth Alliance. The study is available for purchase from the Family Wealth Alliance.
7 “Opportunity costs” refers to the price movement that occurs between the time an investment idea is formulated and the time it is executed.
8 See Greg Saitz, “Investors Cite Need for Speed as OCIO's Appeal,” Fundfire (March 16, 2012).
9 Ibid.
10 The final SEC rules (all 52 pages of them) on whether or not family offices need to register can be found at 17 CFR Part 275 [Release No. IA-3220; File No. S7-25-10].
11 Many large cities have informal (or, sometimes, more formal) groups of families that meet periodically to network and discuss matters of mutual interest. These groups often go by cute acronyms such as CAFE (Cleveland) and PALS (San Francisco).