DECLUTTERING MEDIOCRITY FROM YOUR PORTFOLIO

BY ED MOLDAVER

As we enter 2026, New Year’s resolutions often involve setting bold goals, eliminating stressors, and replacing underperformers with superior alternatives for a stronger future. This principle extends powerfully to wealth management. For ultra-high-net-worth individuals building multi-generational legacies, accepting mediocrity in portfolio management is like holding onto depreciating assets it diminishes potential.

2025 exemplified this with significant volatility, creating opportunities across asset classes. Tariff-related announcements early in the year triggered sharp market swings, while innovation in Artificial Intelligence (AI) fueled notable gains in the technology sector. Private equity and direct investments also provided compelling opportunities amid dislocations (per American Investment Council).

Reflect on performance: The S&P 500 returned 17.8% [SPX: Bloomberg 12/31/24-12/31/25], Bloomberg Aggregate Bond Index 7.2% [Bloomberg Global Aggregate TR Index: Bloomberg 12/31/2024-12/31/2025]. A simple 50/50 portfolio yielded about 12.5% (0.5 × 17.8% + 0.5 × 7.2%) – a clear benchmark. Yet, over the past 15 years, 82% of professional money managers failed to outperform benchmarks, per S&P Dow Jones Indices SPIVA reports (per Institutional Investor). This under-scores the importance of a thoughtful, proactive approach to portfolio management. In periods of volatility, did your advisor adapt in a way that aligned with your objectives identifying opportunities in innovation or private markets where appropriate? The question is not about chasing trends, but about ensuring your portfolio reflects disciplined decision-making and access to differentiated insights.

One year doesn’t define a portfolio, but consistent outperformance even 2-3% annually – compounds enormously over decades. Thoughtful planning today can help secure financial freedom for future generations.

As Vince Lombardi said, “Perfection is not attainable, but if we chase perfection, we can catch excellence.” Reject mediocrity in portfolio management.

Excellence in wealth management begins with the right advisory partnerships. Evaluate yours this year, ensuring that it reflects the rigor and expertise your legacy demands.

Moldaver Lee Cohen Wealth Partners, Rockefeller Capital Management
45 Rockefeller Plaza Floor 5, New York
212.549.5199 / rcm.rockco.com/moldaver-lee-wealth-partner