Fish farm nets on the East coast.Shaunl | E+ | Getty ImagesA version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high net worth investor and consumer. Sign up to receive future editions, straight to your inbox.Equity Group Investments, backed by the family of late billionaire Sam Zell, owns a John Deere dealership, a bluefin tuna fishery and a pedestrian bridge that connects San Diego to Tijuana International Airport. While those holdings sound entirely unrelated, what unites the private investment firm’s wide-ranging portfolio is a focus on old-economy businesses that are less susceptible to disruption from artificial intelligence and other technologies, according to EGI’s president, Mark Sotir.”We tend to put our capital to work for a longer duration than most [private equity] firms. If you’re thinking out 10 years, 12 years, you have to start with picking a company in an industry that you know will be around,” he said. “That’s why we shy away from some tech and some startups. It’s not because we don’t like doing them. It’s just very hard for me to tell you where software is going to be 10 years out.”The anti-AI trade gained steam on Wall Street earlier this year, dubbed “HALO” for “heavy assets, low obsolescence.” Family offices already employ the same strategy with private markets as they invest for generations and value the cash flow that often comes with old-economy businesses, according to Sotir. Economic uncertainty and tax reform has also made backing these asset-heavy companies more attractive.Asset-heavy businesses tend to deter traditional PE investors who are looking to buy and sell within three to seven years, giving family offices opportunities to acquire at a discount, according to Sotir.”Everybody gets so enamored with asset-light, but I like to say, ‘If you’re paying an asset-light premium, then I’m not sure where the advantage is,'” he said.The “one big beautiful bill” law also provided a boon to owners of these businesses by renewing bonus depreciation, enabling companies to deduct the full cost of qualifying assets like machinery or vehicles the first year …
