Asia-Pacific family offices increase hedge fund allocations

Cambridge Associates reported that a growing number of Asia-Pacific family offices and private clients are increasing allocations to hedge funds. The firm said some private clients now have 20–25% of their portfolios in hedge funds and that only a small number hold less than 10% exposure.

After strong gains in public equity markets, wealthy investors in the region have shifted capital into alternative investments to diversify portfolios and seek returns less correlated with equities. Cambridge Associates identified multi-strategy and long-short managers as areas of interest, noting that higher market volatility can create opportunities for those strategies to generate returns beyond long-only equity exposure.

Eugene Snyman, regional head of Asia-Pacific at Cambridge Associates, put some private clients’ hedge fund allocations in the 20–25% range and noted that few of the firm’s private clients have under 10% exposure to the asset class.

Cambridge Associates said its Asia-Pacific business has expanded over the past five years, with regional assets under management and advisement rising by more than 20% to about $20 billion. The firm reported that private clients were the main driver of that growth, with assets from the segment up roughly 60% over the period. Discretionary and outsourced chief investment officer services increased fivefold to about $2 billion.

The firm serves Southeast Asian clients from its Singapore office, while coverage for India is managed through teams in Dubai, Singapore and Hong Kong. Cambridge Associates identified Singapore and Hong Kong as hubs for its family-office business. The firm reported steady growth for private clients, endowments, foundations and superannuation funds in Australia and New Zealand, and said India and Southeast Asia are becoming more important markets for its regional strategy.

Globally, Cambridge Associates reported more than $600 billion in assets under management and advisement, with $108 billion in discretionary assets at the end of 2025. The firm employs about 80 people in Asia-Pacific and plans to add at least another 20 staff over the next five years, with intentions to expand its presence in Singapore, Hong Kong, Sydney and Beijing.

Cambridge Associates described the larger allocations to alternatives as part of a broader trend among ultra-high-net-worth investors in the region moving away from concentrated equity positions and seeking managers that can deliver differentiated return streams in volatile markets.