Family Offices Expand Hedge Fund Investments
Family Office Networks Survey Reveals 20% Growth is on the Horizon
Palm Beach, FL – (May 4, 2021) – Family offices report that they plan to boost their hedge fund investments by 20 percent during 2021 in response to recent volatility, macroeconomic conditions, and the political landscape, a recent FON survey shows. Family offices are increasingly interested in identifying funds that can generate attractive risk-adjusted returns, while also having the ability to protect capital should a market correction appear, according to Family Office Networks, a community of 10,000+ global family offices.
“Hedge Fund Research recently reported that global hedge fund assets grew to $3.801 trillion at the end of the first quarter, which represents the fourth straight quarter of rising assets. This is mainly due to strong investment returns. Hedge funds have been known to thrive during periods of uncertainty and now, with taxes increasing and the markets at an all-time high, it’s a great time to invest. For the most part, we see family offices investing directly into funds more than into SMAs (separately managed accounts) where the minimums are higher,” said Andrew Schneider, Founder and CEO of Family Office Networks.”
“Family offices and high net worth investors are reexamining every single aspect of their investment portfolio following the recent presidential election. In addition, they have spent a good deal of time working from home and not traveling, which has afforded them more time to take a long hard look at their current investment strategy. Hedge funds are a clear winner. We see especially strong interest in strategies such as long/short equity, global macro, options and futures,” said Michael DeLuca, CEO of a San Diego-based family office.
“Many of the investors we speak with share similar concerns related to asset allocation. They feel fortunate that their portfolios have fully recovered from the pandemic driven lows, yet they recognize that their fixed income investments did not provide the protection that they desired. Family offices are now embracing uncorrelated equity trading strategies as a replacement for a portion of their fixed income allocation. The combination of upside participation and downside protection has become increasingly important over the past year,” said Bunkport Capital’s CEO Greg Babij, who is based in Boca Raton, Florida.
In addition to seeking out private investments in the hedge fund space, family offices are also using the latest technology to identify and execute private placements in alternative investments, including hedge funds, private equity, real estate, PIPEs, venture capital and direct deals. FON Marketplace has become the fastest growing platform in the family office space. More family offices are joining because it is a one-stop shop where they can get news on family offices, luxury and investment opportunities and issuers who are trying to raise money are listing on FON Marketplace as a new way to access 70,000 ultra-high-net worth and 5,000+ family offices. If you recently started or plan to start a hedge fund, please contact [email protected] for marketing and fundraising support. If you are a UHNW or family office investor looking to allocate to hedge funds, we also welcome your inquiry.
About Family Office Networks
Family Office Networks is the premier global community for families to share information and intelligence. The team works with a select group of top tier investment managers and sponsors who offer substantial families’ access to stellar investment opportunities in areas such as real estate, venture capital, private equity, and hedge funds. In addition, Family Office Networks shares timely thought leadership on topics related to portfolio management, philanthropy, multi-generational wealth management, compliance and regulation, risk management, insurance, training and education. The website www.familyofficenetworks.com is the hub of Family Office Networks with 500,000 users, including 10,000 family offices, and is a go-to resource for news related to family offices.