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Family offices are upping their hedge fund investments at scale, particularly in EMEA and Asia-Pacific, according to new research from Citi.
Almost three-tenths (29%) of family office respondents were positive about hedge funds in the next six-12 months, ahead of other alternative asset classes (private equity was 28% and private credit 26%).
With 15% of respondents negative towards hedge funds, the net 14% score slightly lagged direct private equity on 15%.
But year-on-year change reveals a huge swing towards hedge, from flat sentiment last year to 14%, while private equity fell from 36% net positive to 15%.
Enthusiasm for hedge funds was particularly great in Europe, the Middle East and Africa (+18%) and Asia-Pacific (+34%), according to Citi’s seventh annual Global Family Office Report.
It surveyed 346 family offices in 45 countries with an average net worth of $2.1bn.
Typical hedge fund allocations rose from 4% to 5% of investor portfolios this year while PE (direct) rose from 7% to 9% and private credit was flat at 3%.
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