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I have added two hierarchy levels above Epic - Objective and Initiative.
I would still like the ability to set either Objective or Initiative as the parent for a given epic. However, currently it looks like the parent MUST be the hierarchy level directly above - it can't skip a level.
I found a thread explaining this is not currently possible:
And that this is the fix, but for some reason I cannot vote for it:
I've checked the suggestion and I can vote for it - are you sure you're logged in for the suggestions lists?
The previous answer is still the same at this stage - grandfather links are not possible using the standard hierarchy.
You'd need to consider a sibling link to show a relationship between Epic and the grandfather. Although this doesn't show up in Portfolio - it's just a method to show a relationship which isn't limited by the hierarchy.