Vol 46 - - Discretionary Investing (“For You”) vs. Advisory Investing (“With You”) | Jadewell Family Office Investment Newsletter
- Ann Yu
- Jan 25
- 6 min read
January 25, 2026
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This week, I met with several industry peers - some long‑time colleagues, and some new faces.
Some are professional fund managers who “invest for clients,” operating under full discretionary mandates.
Others provide investment advice, “investing with clients” as partners in the decision‑making process, while the final call always remains with the client.
Two roles, two responsibilities - each with its own sweetness and its own challenges.
In this week’s newsletter, we share a closer look at these everyday realities.
Contents of This Week's Newsletter
【Family Office Buzz】
Discretionary Investing ("For You") vs. Advisory Investing ("With You")
🔵 Discretionary: The Weight of Making Decisions for Clients
Once a professional fund manager receives a client’s capital and authorization, they can operate freely within the agreed framework - roaming the market with full discretion.
But markets are never steady.
Fund managers who survive over the long run rely heavily on the “trust capital” accumulated during their good years. Yet this capital often evaporates at lightning speed when the market turns against them.
All they can do is pray that, before the client’s trust is fully depleted, the market offers a sliver of hope.
One fund manager shared that today’s markets move too quickly. Too many asset prices are driven by "pure momentum" - up one day, down the next - with no clear logic to follow.
So sometimes, in the chase for performance, you inevitably need a bit of a “gambler’s mindset.” 🎲
Do fund managers fully understand every investment they make? Not always. But if they wait until every detail is perfectly clear, the opportunity will likely have passed them by.
And when clients ask for explanations, all they can do is fake it till you make it - pretend to be Jensen Huang, pretend they can see the future trajectory of the market.
🍬 The "sweet" side of being a discretionary fund manager
Acting immediately on your own judgment without needing to persuade clients each time
If you’re uncertain in the moment, clients won’t know it
When performance shines, the sense of accomplishment is direct, pure, and unmatched
🌧️ The "bitter" side
A client’s “What happened lately?” may sting more than market volatility
The constant wondering of “If only I had…”
Carrying not just the market risk for clients, but also the emotional pressure that comes with it
🟡 Advisory: The Patience Required to Make Decisions with Clients
On the other side of the scale is the role of the investment advisor.
I’ve been in this role for nearly 20 years, and every example below is a classic story that advisors everywhere know all too well.
Example 1️⃣: When clients buy too late
Sometimes an advisor spots a great opportunity.
The first time they present it, the client isn’t interested.
The stock starts moving.
The second time, the client is still unsure.
When the stock finally surges, the client calls: “Alright, let’s do it.”
And then? The rally is over, and the client buys right at the peak.
Whose responsibility is it? Naturally, the advisor’s. The client could never be wrong.
Example 2️⃣: When clients buy too early
Sometimes a client follows the advisor’s suggestion but buys too early, and the position quickly turns negative.
The advisor admits the timing was early - but that’s exactly why the plan was to “buy in tranches.” With the pullback now, it’s the perfect moment for the second tranche!
The client says, “I’m not sure… let’s wait and think about it.”
And then? The stock rebounds.
The “buy in batches” plan, the investment discipline - everything gets overridden by emotion.
Example 3️⃣: When the advisor is simply wrong
Sometimes the advisor really does misjudge the market, and the client suffers a large loss.
The client understands the advisor isn’t a fortune-teller and can’t win every time.
But when the advisor recommends cutting losses and exits the position, the client refuses: “I think we should wait a bit longer - maybe it’ll bounce?”
And then? The stock collapses.
It stays in the client’s portfolio like a “pillar of shame,” brought up at every meeting to remind the advisor of the mistake.
🍯 The "sweet" side of being an investment advisor
Learning and navigating the market together with clients
Pressure is more spread out compared to discretionary mandates
🍂 The "bitter" side
Watching opportunities slip away in a client’s hesitation
Knowing a stop-loss is necessary, but the client won’t act
When things go right, it’s the client’s achievement; when things go wrong, it’s the advisor’s responsibility
🔺 Two Roles, Both Worth Respect
Discretionary means “I do it for you.”
Advisory means “I do it with you.”
Both require professionalism and patience.
Both carry pressures that outsiders rarely see.
Curious to learn more? Come chat with Jadewell Family Office anytime!
【Next Week】Key Events to Watch in the Week Ahead
Central Banks
Jan 28 (Wed) - US FOMC Rates Decision, Bank of Canada Rates Decision
US Earnings Led by Tech
Jan 27 (Tue) - UNH, RTX, BA
Jan 28 (Wed) - ASML, GEV, TXN, T, SBUX, GLW, STX
Jan 29 (Thu) - MSFT, META, TSLA, V, MA, LRCX, IBM, LMT
Jan 30 (Fri) - AAPL, XOM, CVX, WDC, SNDK
【Social Media】Topics from Jadewell's Social Media
【When Nvidia Meets Vera Rubin】
Why did NVIDIA choose the name Rubin for its newly unveiled flagship architecture?
In fact, every generation of NVIDIA’s GPU architectures is named after scientists who changed the way humanity understands the world.
This time, “Rubin” pays tribute to the late astronomer Vera Rubin, the scientist who discovered Dark Matter.
Who was she? And why would NVIDIA use dark matter as the symbol for the next era of AI?
The meaning behind this choice runs deeper than you might think. 👉 Facebook (Chinese) / Instagram (English)
【What Does "X Nanometer" Chip Actually Mean?】
Recently, a client asked me: “The newspapers keep talking about 2‑nanometer and 3‑nanometer chips - what does that actually mean?”
So today, let’s break it down in the simplest way possible. 👉 Facebook (Chinese) / Instagram (English)
【Skill or Luck? Stories of Two Fund Managers】
As a family office, whenever we recommend a fund to clients, we’re often asked:
“Hmm, the performance looks great—but is that because of the manager’s skill, or just pure luck?”
So today, we’re sharing the stories of two fund managers and letting you decide for yourself. 👉 Facebook (Chinese) / Instagram (English)
About Jadewell Family Office
Jadewell is committed to offering proactive, customized services akin to a “single-family office,” yet within the ease of a “multi-family office” environment.
- HK SFC Licensed (Type 4&9)
- Tailor-Made Investment Advisory Services
- Portfolio Consolidation Across Banks
- Zero Commission Model
- Decades of Experience Across Leading Global Private Banks
Ann Yu
Co-Founder and CEO
Jadewell Family Office
FOR INSTITUTIONAL & PROFESSIONAL CLIENTS ONLY – NOT INTENDED FOR RETAIL CUSTOMER USETHESE ARE NOT STOCK OR PRODUCT RECOMMENDATIONS
This document is intended for informational purposes only. It should not be considered as advice or a recommendation for any specific investment product, strategy, plan feature, or any other purpose in any jurisdiction. It is educational and does not represent a commitment from Jadewell Family Office to participate in any mentioned transactions. Any examples used are generic, hypothetical, and for illustration purposes only.
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It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
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