Asia-Pacific family offices up hedge fund allocations

Asia-Pacific family offices are boosting their investments in hedge funds and other alternative assets, according to a report by Business Times. The surge is driven by wealthy investors looking to diversify their portfolios following robust performance in public markets, the report states.

Eugene Snyman, regional head of Asia-Pacific at Cambridge Associates, a leading investment consultancy, revealed that some of the firm's private clients now allocate between 20% and 25% of their portfolios to hedge funds. Notably, a significant majority of Cambridge Associates' private clients maintain at least 10% exposure to this asset class.

Cambridge Associates remains optimistic about the hedge fund opportunity, particularly multi-strategy and long-short managers. The consultancy attributes the growing interest in alternatives to heightened market volatility, which creates opportunities for managers to generate returns beyond traditional long-only equity exposure.

The rising demand for alternatives is part of a broader expansion in Cambridge Associates' Asia-Pacific operations. The firm's regional assets under management and advisory services have surged by more than 20% over the past five years, reaching approximately $20bn. Private clients have been the primary catalyst for this growth, with assets from this segment increasing by 60%. Discretionary and outsourced chief investment officer services have also grown rapidly, quintupling to about $2bn.

Globally, Cambridge Associates manages over $600bn in assets under management and advisory services, and $108bn in discretionary assets as of the end of 2025. Singapore and Hong Kong are key hubs for the firm's Asia-Pacific family-office business, with consistent growth across private clients, endowments, foundations, and superannuation funds in Australia and New Zealand.

India and Southeast Asia are emerging as significant markets for Cambridge Associates, which currently serves clients in these regions through offices in Singapore, Dubai, Singapore, and Hong Kong. The firm plans to expand its presence in key regional centers, including Singapore, Hong Kong, Sydney, and Beijing. Currently, Cambridge Associates employs around 80 people in Asia-Pacific and anticipates adding at least 20 more over the next five years.