Family offices boosted their allocation to stocks during the second quarter, reflecting increased confidence in public equities despite concerns about market concentration and potential bubbles. Single family offices raised their stock holdings to 37% of their portfolios, up from 34% in the prior quarter, marking the largest quarterly increase in several years, according to data from the CNBC Family Office Portfolio Tracker powered by Addepar.
The shift away from alternative investments was substantial, with family offices reducing their combined exposure to private markets, real estate, private equity, venture capital, and private credit by 3 percentage points. This reallocation signaled a push by wealthy families to deploy capital into publicly traded securities. The movements were tracked across hundreds of family offices representing more than $1.4 trillion in assets, providing a real-time snapshot of actual portfolio holdings rather than survey-based estimates.
While market performance contributed to the stock allocation gains, with the S&P 500 advancing approximately 15% during the quarter, family offices chose not to rebalance their portfolios back toward alternatives. This decision suggested a longer-term bullish positioning toward equities. Interest in artificial intelligence and related technology investments appeared to drive much of the activity, with the most commonly held stocks including Microsoft, Amazon, Alphabet, Apple, and Nvidia.
Alternative investment valuations declined during the period, with private credit funds particularly affected. Approximately 18% of recently established private credit funds with vintages from 2020 onward posted asset value markdowns, compared with a historical average of 9% for older vintages. Real estate and venture capital allocations also faced valuation pressures. Fixed income holdings remained unchanged at 8% of portfolios, while hedge funds maintained 7% and other alternatives held at 6%.
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