Asia-Pacific family offices up hedge fund allocations

Asia-Pacific family offices are increasingly allocating funds to hedge funds and other alternative investments, according to a report by Cambridge Associates. The surge in allocations comes as wealthy investors look to diversify their portfolios following strong gains across public markets. Eugene Snyman, regional head of Asia-Pacific at Cambridge Associates, revealed that some private clients now have between 20% and 25% of their portfolios in hedge funds, with many having at least 10% exposure to the asset class.

The consultancy remains optimistic about the hedge fund opportunity set, particularly multi-strategy and long-short managers, as heightened market volatility presents opportunities for managers to generate returns beyond traditional long-only equity exposure. This growing appetite for alternatives is part of a broader expansion in Cambridge Associates' Asia-Pacific business, with the firm's regional assets under management and advisement increasing by more than 20% over the past five years to approximately $20bn.

Singapore and Hong Kong have emerged as key centers for the firm's Asia-Pacific family-office business, while Australia, New Zealand, India, and Southeast Asia are also becoming increasingly important markets. Cambridge Associates currently employs about 80 people in Asia-Pacific and plans to expand its presence across key regional centers, adding at least 20 more employees over the next five years.

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