Family offices significantly increased their stock allocations in the second quarter of 2025, while reducing their investments in real estate and private markets, as indicated by data from CNBC’s Family Office Portfolio Tracker. Single family offices raised their stock holdings to 37% of their portfolios, up from 34% in the previous quarter. This shift, the largest in several years, reflects a growing confidence among wealthy investors in public equities, particularly in the context of advancements in artificial intelligence.
Eric Poirier, CEO of Addepar, which provides insights for the tracker, interpreted this trend as a sign of family offices’ willingness to engage more heavily in public equity markets. This transition occurs amid concerns over market volatility and the potential for overconcentration in certain sectors. The increase in stock allocation coincided with a boost in stock market performance, with the S&P 500 rising approximately 15% during the same period.
In contrast, family offices saw a slight decrease in private market investments, such as private equity and venture capital, which dropped from 49% to 46%. This reduction is attributed to markdowns in private credit valuations, with recent vintage private credit funds exhibiting a more significant decline compared to previous years.
Family offices maintained stable positions in fixed income at 8% of their portfolios, while allocations to hedge funds and other alternative investments remained at 7% and 6%, respectively. Looking ahead, experts anticipate key developments in interest rates and bonds that could further influence the investment strategies of family offices.
Why this story matters
- The shift in family office investments illustrates broader trends in high-net-worth investor behavior and market confidence.
Key takeaway
- Increased stock allocations indicate a bullish sentiment toward equities, particularly in relation to AI advancements.
Opposing viewpoint
- Some analysts warn that rising stock market investments may risk imbalance if driven solely by trends rather than fundamental valuations.
