33% of family offices allocate to hedge funds for diversification

According to the UBS Global Family Office Report 2024, hedge funds are a preferred diversification tool for one third (33%) of family offices worldwide. The latest UBS report, which surveyed 320 single family offices globally, revealed an average net worth of $2.6 billion per office, collectively overseeing more than $600 billion in wealth.

Regionally, North American family offices allocate 35% of their portfolios to private equity and 8% to hedge funds. In contrast, family offices in Latin America allocate 18% to private equity and 2% to hedge funds; in Switzerland, 18% and 3%; in the rest of Europe, 22% and 4%; in the Middle East, 27% and 5%; in North Asia, 18% and 6%; and in Southeast Asia, 19% and 5%.

Looking ahead, North America and the Asia-Pacific region (excluding Greater China) are poised to attract increased investments, with over a third of family offices planning to boost allocations in these areas (38% and 35%, respectively).

Confidence in active management as a diversification strategy is growing, with nearly 39% of family offices globally placing greater reliance on manager selection and active management, marking a 4% increase from 2023. Additionally, generative AI has emerged as the most popular investment theme, with 78% of family offices likely to invest in this sector within the next two to three years.