Holly Newman Kroft, managing director and senior wealth advisor at Neuberger Berman in New York, shared insights into her approach to wealth management amid current market uncertainties. With over two decades of experience and a ranking as Barron’s No. 3 woman advisor, Newman Kroft specializes in advising ultrahigh-net-worth individuals and their families on investment strategies and estate planning.
Newman Kroft transitioned from a career in corporate finance to personal finance more than 20 years ago, prioritizing greater flexibility to balance family life with a successful career. Since joining Neuberger Berman in 2005, she has developed tailored investment solutions focused on capital preservation and long-term growth.
When asked about what concerns her clients most in today’s markets, Newman Kroft highlighted several factors including inflation, market valuations, geopolitical tensions, oil prices, and the heavy concentration of returns driven by just 10 stocks within the S&P 500. She noted rising domestic political uncertainties as another source of apprehension.
To manage such volatility, Newman Kroft stressed the importance of establishing an investment policy statement that aligns with clients’ objectives and risk tolerance. Drawing lessons from the 2008–09 financial crisis, she emphasized that maintaining a balanced asset allocation helps clients avoid reactive decisions during downturns. Her team regularly reassesses and tactically rebalances portfolios as market conditions and client circumstances evolve.
Regarding client anxiety over market fluctuations, Newman Kroft advises maintaining perspective on asset allocation and accepting some underperformance relative to heavily concentrated market gains. She underscored the priority of preserving irreplaceable wealth—whether inherited or earned—and cautioned that recovering from steep market losses requires significantly larger gains, making downside protection critical.
In response to the market dip in March, her team moved modestly overweight in U.S. large-cap stocks, viewing the pullback in valuations as an opportunity. Newman Kroft expressed continued confidence in small-cap stocks and identified international developed markets as complementary to both the S&P 500 and emerging markets due to their lower exposure to tech and growth sectors.
She also noted client concerns about sustained higher interest rates and their impact on borrowers but pointed out the attractiveness of fixed income instruments for delivering steady after-tax returns with low volatility. Alternatives, including commodities, were highlighted for their potential to provide above-average returns and serve as hedges against inflation and geopolitical risks.
At the end of the second quarter, Newman Kroft observed a broadening of equity market performance beyond the dominant “Magnificent Seven” tech stocks. Both the equal-weighted S&P 500 index and the Russell 1000 Value Index were outperforming the traditional S&P 500, indicating increased investor interest in undervalued and previously overlooked stocks.
While she did not specify sectors to avoid, Newman Kroft’s approach remains focused on diversification, capital preservation, and pursuing responsible growth for her clients amid an evolving and uncertain market environment.