This publication recently spoke to the founder and driving force behind membership organization R360 about investment, risk, and using the wealth of UHNW members to help solve pressing problems in the US and further afield.

The ultra-high net worth members of R360, a global, member-driven group of wealth creators, are taking a generally cautious approach to asset allocation, with a cash buffer in today’s turbulent financial environment.

Even with a recession on the way, such wealth owners need to consider their options carefully.

Members look at sectors that they think are unlikely to be affected by a possible recession, such as defense, along with AI, data centers, and energy firms. With the rise of AI and the computer capacity required to power it, this puts energy front and center, Charlie Garcia, founder of the organization, told Family Wealth Report in a recent call. 

“Every member is different. But in general, they are investing for the long term. Their cash position today is close to 12 per cent,” Garcia said.

He likened the R360 membership’s position to the stance of legendary US investor Warren Buffett and that of his Berkshire Hathaway business.

“Warren Buffett is holding roughly $345 billion in cash – more than half of Berkshire Hathaway’s assets – calmly awaiting market panic to produce irresistible bargains. Buffett’s cash reserve isn’t idle money; it's a storm-warning gauge. When he starts buying, you'll know it's safe again,” Garcia said.

Only 20 per cent of R360 members manage their own investments. The allocation to equities among all 140 members is about 16 per cent, he continued.

The US tariffs, announced on April 2 by President Donald Trump, have shocked some investors, wiping billions off US stocks and prompting thoughts about asset allocation. A note on April 7 from Citi Private Bank, for example, gives a flavor: "Given the heightened uncertainty on growth, policy, and earnings, we expect that even high-quality equities will remain under pressure in the near term. Investors who are holding on to hope of a swift rescue from monetary or fiscal policy support will likely be disappointed. In fixed income, we are increasingly concerned about a deterioration in credit and prefer short duration bonds and cash to long duration Treasuries."

Garcia, reflecting on the tariffs, noted that the current government sees them as a means of trying to correct a trend that has played out in the American economy since the 1980s – a decline in the number of middle class people who earned a living in manufacturing, and the demise of certain industrial cities, etc.

Also managing partner of R360’s Florida chapter, Garcia is proud of how the organization has developed since he established it in 2020, working alongside figures such as Michael Cole (whom FWR interviewed here in 2021). Membership headcount will be capped at 500 in the US (at some point, a non-US version of R360 will take flight). 

Individuals who complete the R360 assessment and align with the organization's values may be invited to a member peer group led by an expert chair, providing guidance on wealth stewardship, legacy planning, and personal fulfillment. Among its features are aviation, wellness and other interest-driven circles for members and spouses. On its website, R360 states that it is an "Oasis: No Pitches. No Selling. No Conflicts."

R360 has chapters in major cities across the country, including Florida, New York and Texas, where it hosts peer-led discussions and expert advisory circles. Garcia chairs the South Florida chapter; Barbara Goodstein, managing partner, chairs the New York City chapter; Michael Cole, MP, is chair in Texas; Rich Cohen is managing director, member experience and chief legal officer.

A varied background
Garcia comes from a financial sector background and is also a decorated military veteran. Garcia, who started out at the US Air Force Academy, subsequently served five years as an intelligence officer before being appointed to the White House Fellows program. He switched careers after earning an MPA from the University of Oklahoma and a JD from Columbia Law School, founding and later selling Sterling Financial, an investment bank and wealth management firm.

He holds several positions in US public life, such as chair of the US Air Force Academy Board of Visitors, and member of the Florida State Board of Education. A role that speaks to some of his passions was that of helping enhance candidate diversity across five military service academies.

Garcia, who used to be involved in the Tiger 21 network membership group of wealthy individuals – joining that group in 2011 – said that R360 members are often focused on the tough times many people, at home and abroad, face.

“The richest Americans own the vast majority of the US stock market, according to Fed data,” he said. “The top 10 per cent of Americans held 93 per cent of all stocks, the highest level ever recorded. Meanwhile, the bottom 50 per cent of Americans held just 1 per cent of all stocks in the third quarter of 2023.”

FISHES
R360 focuses on different forms of capital under the acronym “FISHES”: Financial, Intellectual, Social, Human, Emotional, and Spiritual.

“We are getting members to work with others to fix the world’s problems,” Garcia said, referring to how, in a recent case, the serial entrepreneur and thought leader Sir Richard Branson talked to members who went to meet with him in his home on Necker Island.. 

“R360 organized a leadership retreat with Richard Branson right when he came back from space, we were the first group to visit after Necker Island opened after the pandemic. I’ve done eight of these over the years, and have also traveled to South Africa, to Ulasaba with Richard,” Garcia said, obviously enthusiastic about these experiences.

“We embrace six core values, two of which truly stand out here: Curiosity and Generosity of Spirit. During politically and economically volatile times, curiosity becomes more than just an asset – it's a necessity. We often remind our members that their minds function like parachutes; they only work effectively when open.

“Our community is uniquely diverse: approximately one-third Democrat, one-third Republican, and one-third Independents who thoughtfully move between perspectives. Despite these differences, our members consistently demonstrate genuine curiosity and generosity in engaging with each other's views. They’re committed to respectful, adult conversations that deepen mutual understanding, especially around sensitive topics like money, business, and philanthropy,” Garcia said.

Each year, R360 brings in expert resources to lead immersive three to four-hour workshops specifically on “deep listening." These sessions welcome not only members but also their spouses, and occasionally adult children. R360 is hosting an all-day event dedicated to this purpose in Palm Beach on April 24, he said. 

An investment example
Giving an example of the kind of specific investment he likes, Garcia referred to one his holdings, a Canadian oil and gas company, Canadian Natural Resources (NYSE: CNQ). It is the only example he has come across of a business that has produced a 20 per cent dividend for 23 years. “Over time, the dividend will outperform what you have paid for the stock,” he said, noting that such a return will also be more tax-efficient. 

Canadian Natural Resources is one of Canada’s largest and most diversified energy producers with an asset portfolio that spans oil sands mining, thermal in-situ production, conventional heavy and light oil and natural gas, he noted. CNQ has the second-largest reserves compared with global energy peers that include BP, Chevron, Exxon Mobil and Shell. 

A significant portion of its reserves are high-value synthetic crude oil, light crude, and NGLs with a 33-year total proved reserve life index.

Family offices
Asked about how the members run their financial affairs, Garcia said about 80 per cent of them outsource managing their wealth to single-family offices, or an MFO. “They aren’t looking to lose their money; they are thinking about the long term,” he said. 

About 20 per cent of members made their money in financial services, such as hedge funds, private equity, banking, brokerages, etc.

There seems to be a difference in attitudes toward investing between those who make money inside and outside the financial world.