Patrick Fruzzetti is a partner, managing director and portfolio manager at Rose Advisors–A Hightower Company. He works with wealthy families and individuals to provide a high-quality client experience and objective investment advice. As portfolio manager for nearly $1.5 billion in client assets, Fruzzetti directs the team’s stock-specific research and is involved in all the team’s investment analysis. He also provides market commentary, insights, and portfolio strategy.

Russ Alan Prince: Tell us about Rose Advisors. What about your approach and your team make you better able to serve your clients?

Patrick Fruzzetti: Rose Advisors is a private wealth management firm based in New York City, managing over $1.5 billion for clients located across the United States and internationally. Rose is set apart by a tight-knit team, where each team member plays an integral part in the client experience. By employing in-house research, we have a deeper understanding of the companies and industries we invest in than those who outsource their management decisions. This enables us to prepare and make appropriate changes based on the investment landscape for the benefit of our clients. We use a hands-on approach to ensure each client feels supported as we implement strategies to grow and protect their wealth. Our approach extends far beyond traditional wealth management to ensure a positive client experience as we guide and advise them through various financial and life decisions.

We engage in financial planning, with a focus on retirement and multi-generational advisory to ensure that we are guiding clients in all phases of their lives. We have two licensed Certified Financial Planners on our team who are available to meet with clients to focus on strategies that will support their overall financial health. We strive to be a sounding board and source of confidence for clients in transition, families, and foundations.

Prince: With recent market fluctuations, how do you adapt your wealth management strategy? Have you seen any emerging trends in private wealth advisory coming from the market highs we have experienced in recent months?

Fruzzetti: During times of heavy market fluctuation, my focus is on client management. Our philosophy regarding investment management does not change during these periods. What does change is our approach with clients, be it managing expectations, focusing on their time horizon, or helping them identify meaningful information amidst the clutter of news headlines. Dealing with market psychology doesn’t change, although the trends in the market can alter an investor’s ideology.

Trends in the stock market are the most accessible, digestible piece of data for the average consumer to measure the perceived health of the overall economy. This demonstrates the importance of managing expectations. “Fear of missing out” has been a huge trend that we see resurfacing - the idea that the market is infallible is a recipe for a disappointed investor in the future. For example, we would not drastically change a client’s investment strategy based on how the “magnificent seven” tech stocks are doing; however, we could take advantage of higher interest rates in our income strategies. Reminding clients of their time horizons, current and future liquidity needs, and their general risk tolerance is crucial in times like today. We also have a fiduciary responsibility to ensure that clients are not tying their perceptions of a healthy economy to irresponsible spending.

Additionally, we offer our clients exposure to various types of alternative investments as a way to diversify their risk into other asset classes that are not readily available in the public markets. Over the last few years, we have invested in opportunities across multi-family real estate, farmland, and precious metals. The asset classes provide a level of diversification that cannot be captured in most of the public markets. As a result, investors seeking portfolio stability (i.e. against interest rate volatility and inflation) and asset diversification have turned to such investments in today's volatile market environment.

Prince: How have you been able to make a positive impact not only on your individual high-net-worth clients but also in the non-profit and foundation space?

Fruzzetti: By tailoring our approach to wealth management and listening to the needs of each individual client, we have been able to establish positive outcomes across our business. For non-profits and foundations, we seek to provide qualified organizations with access to top-tier, customized money management strategies to sustain and grow their precious and finite financial resources for as long as possible. As an additional benefit and way of “giving back,” we have often offered lower minimums for organizations in need. It is a mutually beneficial relationship, as working with non-profit organizations requires a different approach and skillset, allowing me to meet, manage and strategize with leaders and experts in various industries. As some organizations have investment restrictions based on their own mission statements, our catered investment approach allows for a meaningful investment experience while protecting the integrity of the organization. Our in-house research process makes this approach both possible and efficient.

To name a specific cause that is near to my heart, Rose Advisors has been able to offer our services to a family foundation that is the principal supporter of a major medical research organization that directly impacts patients and their loved ones that are suffering from an Alzheimer’s or dementia diagnosis. It is incredibly fulfilling to utilize my industry expertise to support the financial assets of a foundation that is supporting such a life-changing cause.

Russ Alan Prince is a strategist for family offices and the ultra-wealthy. He has co-authored 70 books in the field, including Making Smart Decisions: How Ultra-Wealthy Families Get Superior Wealth Planning Results.