Family offices are set to increase their allocations to hedge funds, according to Family Office Networks (FON), which includes 10,000 family offices worldwide with $15 trillion in assets.
“Roughly 30 percent of the family offices that we have surveyed over the past few months have mentioned that they plan on increasing their allocation into hedge fund products,” said Andrew Schneider, founder and CEO of Family Office Networks. “With the broader capital markets being down last year, family offices are looking for preservation of capital.”
According to FON, more capital is being allocated to traditional long/short, global macro and managed futures strategies. There is also a rise in the popularity of newer strategies including blockchain, artificial intelligence and cannabis funds.
“We’re planning to allocate an additional 10 percent to hedge funds in the first quarter of this year and are in the process of conducting due diligence on a select few. In
