Asia-Pacific family offices increase hedge fund allocations

Family offices in the Asia-Pacific region are increasing their allocations to hedge funds and alternative investments to diversify portfolios following strong gains in public markets. According to data from Cambridge Associates, some private clients in the region now hold between 20% and 25% of their portfolios in hedge funds, with very few maintaining exposure below 10%. The firm notes that market volatility is creating opportunities for multi-strategy and long-short managers to generate returns beyond traditional equity exposure.

Additionally, a report from Citi Wealth indicates that Asia-Pacific family offices are outperforming their global peers. Approximately 26% of regional family offices reported year-to-date investment returns exceeding 15%, a figure nearly double the global average. This outperformance is attributed in part to strong regional public equity markets, such as the Nikkei 225. The survey highlights that APAC family offices are among the most proactive globally in responding to market volatility through active management.