Key Takeaways
- • Asia-Pacific family offices are raising hedge fund allocations to 20–25% of portfolios, with few clients maintaining less than 10% exposure to the asset class, according to Cambridge Associates data cited in the Business Times report.
- • Cambridge Associates' Asia-Pacific assets under management and advisement reached approximately $20 billion, growing more than 20% over the past five years, driven primarily by private client assets increasing 60%.
- • Discretionary and outsourced chief investment officer services expanded fivefold to $2 billion, reflecting institutional appetite for delegated portfolio management in the region.
- • Multi-strategy and long-short hedge fund managers are positioned as primary beneficiaries of this allocation shift, as heightened market volatility creates return opportunities beyond traditional long-only equity strategies.
- • Singapore, Hong Kong, Australia, and New Zealand remain core markets, while India and Southeast Asia are emerging as increasingly important growth centers for family-office alternative investment mandates.
Summary
Asia-Pacific family offices are materially increasing exposure to hedge funds as wealthy investors seek portfolio diversification following robust public market performance. Cambridge Associates, a leading global investment consultancy, reports that private clients in the region now typically allocate between 20% and 25% of assets to hedge funds, with minimal exposure below 10%. According to Eugene Snyman, regional head of Asia-Pacific at Cambridge Associates, this reallocation reflects a deliberate strategy to capture returns beyond traditional equity-only portfolios in an environment of elevated market volatility.
The hedge fund allocation trend is driving broader growth across Cambridge Associates' Asia-Pacific platform. Regional assets under management and advisement increased by more than 20% over the past five years to approximately $20 billion, with private client assets expanding 60%—substantially outpacing overall business growth. This concentrated expansion in high-net-worth client servicing underscores the region's wealth concentration and institutional demand for sophisticated portfolio solutions.
Within that expansion, discretionary and outsourced chief investment officer services have experienced exceptional momentum, growing fivefold to $2 billion. This five-fold increase in delegated management services indicates that family offices and institutional investors are increasingly outsourcing portfolio decision-making to professional managers rather than maintaining in-house investment operations. Cambridge Associates notes particular enthusiasm for multi-strategy and long-short hedge fund managers, viewing these strategies as well-positioned to exploit dislocations created by market volatility.
Geographically, Singapore and Hong Kong remain the primary hubs for Cambridge Associates' Asia-Pacific family-office business, while Australia and New Zealand have delivered consistent performance across private clients, endowments, foundations, and superannuation funds. The firm identifies India and Southeast Asia as emerging markets of strategic importance, suggesting that alternative asset allocations are expanding beyond traditional wealth centers.
Globally, Cambridge Associates maintained more than $600 billion in assets under management and advisement as of the end of 2025, with $108 billion in discretionary assets, positioning the firm's Asia-Pacific growth within a substantial institutional platform.
The hedge fund allocation trend is driving broader growth across Cambridge Associates' Asia-Pacific platform. Regional assets under management and advisement increased by more than 20% over the past five years to approximately $20 billion, with private client assets expanding 60%—substantially outpacing overall business growth. This concentrated expansion in high-net-worth client servicing underscores the region's wealth concentration and institutional demand for sophisticated portfolio solutions.
Within that expansion, discretionary and outsourced chief investment officer services have experienced exceptional momentum, growing fivefold to $2 billion. This five-fold increase in delegated management services indicates that family offices and institutional investors are increasingly outsourcing portfolio decision-making to professional managers rather than maintaining in-house investment operations. Cambridge Associates notes particular enthusiasm for multi-strategy and long-short hedge fund managers, viewing these strategies as well-positioned to exploit dislocations created by market volatility.
Geographically, Singapore and Hong Kong remain the primary hubs for Cambridge Associates' Asia-Pacific family-office business, while Australia and New Zealand have delivered consistent performance across private clients, endowments, foundations, and superannuation funds. The firm identifies India and Southeast Asia as emerging markets of strategic importance, suggesting that alternative asset allocations are expanding beyond traditional wealth centers.
Globally, Cambridge Associates maintained more than $600 billion in assets under management and advisement as of the end of 2025, with $108 billion in discretionary assets, positioning the firm's Asia-Pacific growth within a substantial institutional platform.
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