How do I perform client-side prediction for a physics handle?

My current setup is:

Click on box -
Server raytraces, and GrabComponent()s the object -
Multicast gravity off

On tick:
Calculate position for object, and SetTargetLocationAndRotation()s it to that position

Works perfectly and is replicated perfectly, but if any latency is introduced, the held object is moved after the player moves (when the server receives the movement)
Is there any way I can implement client-side prediction for this?