Key Takeaways
- • Cambridge Associates (CA) is advising Asian family offices to increase hedge fund and alternative investment exposure as a buffer against market turbulence tied to US tariff policy, according to a CityWire report cited by Hedgeweek.
- • Ming Yan, Managing Director at CA in Singapore, says family offices that had de-prioritised hedge funds during recent equity market strength are now revisiting that decision.
- • CA advises more than 280 family offices globally, representing 28% of its private client base.
- • Singapore's single-family office count surged to over 2,000 by end-2024, with nearly half established since the beginning of 2023.
- • CA is urging clients to avoid reactive portfolio changes and make measured, long-term allocation decisions.
Summary
Cambridge Associates is encouraging Asian family offices to raise their exposure to hedge funds and other alternative investments as a hedge against market volatility linked to US tariff policy and broader macroeconomic uncertainty, according to a report by CityWire published via Hedgeweek. Ming Yan, a Managing Director at CA in Singapore, said recent selloffs triggered by renewed trade tensions are prompting more family offices to reconsider diversification, particularly into hedge funds.
Yan said many families had reduced hedge fund allocations during the recent period of equity market strength, but volatility is prompting them to revisit that decision. She said CA has been telling clients that market pullbacks present an opportunity to rebalance portfolios and broaden alternatives exposure, with hedge funds positioned as a core component given their potential to generate alpha and hedge downside risk.
CA advises more than 280 family offices globally, which Yan said represents 28% of its private client base. Asian family offices, many of them younger and less established in alternatives than Western peers, are facing their first major test of navigating persistent market swings. Yan cited Singapore, where the number of single-family offices reached more than 2,000 by the end of 2024, with nearly half of those set up since the beginning of 2023. She said many newer family offices are experiencing real volatility in both their investment portfolios and operating businesses for the first time.
While some regional family offices have used recent dislocations to buy beaten-down Chinese equities and explore Hong Kong real estate, Yan said CA is steering discussions toward a broader strategic reassessment that includes private markets and hedge fund strategies designed to withstand both equity downturns and macro shocks. CA is also urging clients to avoid reactive moves. "We want to keep clients from chasing what's hot or panicking in the face of short-term noise," Yan said. "Instead, we focus on making measured, long-term decisions—of which hedge fund diversification is increasingly one."
Yan said many families had reduced hedge fund allocations during the recent period of equity market strength, but volatility is prompting them to revisit that decision. She said CA has been telling clients that market pullbacks present an opportunity to rebalance portfolios and broaden alternatives exposure, with hedge funds positioned as a core component given their potential to generate alpha and hedge downside risk.
CA advises more than 280 family offices globally, which Yan said represents 28% of its private client base. Asian family offices, many of them younger and less established in alternatives than Western peers, are facing their first major test of navigating persistent market swings. Yan cited Singapore, where the number of single-family offices reached more than 2,000 by the end of 2024, with nearly half of those set up since the beginning of 2023. She said many newer family offices are experiencing real volatility in both their investment portfolios and operating businesses for the first time.
While some regional family offices have used recent dislocations to buy beaten-down Chinese equities and explore Hong Kong real estate, Yan said CA is steering discussions toward a broader strategic reassessment that includes private markets and hedge fund strategies designed to withstand both equity downturns and macro shocks. CA is also urging clients to avoid reactive moves. "We want to keep clients from chasing what's hot or panicking in the face of short-term noise," Yan said. "Instead, we focus on making measured, long-term decisions—of which hedge fund diversification is increasingly one."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.