Marginal Analysis in HNWI Asset Management: When to Rebalance

Insights for the Global LP Community

The global LP community is no stranger to the complexities of managing large, diversified portfolios. While much of the focus is on fund commitments, co-investments, and emerging markets, there’s a growing recognition of the importance of applying rigorous analytical frameworks to high-net-worth individual asset management. One such framework is marginal analysis, a powerful tool for evaluating the costs and benefits of portfolio rebalancing decisions.

For LPs who also manage family office assets or advise HNWIs, understanding when and how to rebalance is critical to achieving optimal risk-adjusted returns. In this blog post, we’ll explore how marginal analysis can guide rebalancing decisions, the key factors to consider, and why this approach is particularly relevant in today’s volatile market environment.