Family offices substantially increased their allocation to stocks during the second quarter, shifting their investment strategies notably away from alternative assets, according to data from the CNBC Family Office Portfolio Tracker powered by Addepar.
Stock holdings among single family offices rose to 37% of total portfolios in the second quarter, compared with 34% in the first quarter. This represented the largest quarter-on-quarter increase observed over the preceding three to four years. The tracker, which aggregates anonymized portfolio data from hundreds of family offices representing more than $1.4 trillion in assets, provides real-time insight into actual investment holdings rather than survey-based estimates.
The increased equity allocation came at the expense of alternative investments. Combined holdings in private companies, real estate, private equity, venture capital, and private credit declined by 3 percentage points, while cash positions decreased by less than 1 percentage point. Market performance significantly influenced these shifts, with the S&P 500 rising approximately 15% during the quarter, while private market valuations declined due to challenges in private credit. Family offices did not substantially rebalance their portfolios, instead allowing stock allocations to grow as a share of total holdings, suggesting a longer-term bullish positioning.
The movement into equities reflects growing interest in artificial intelligence-related investments, which have been predominantly expressed through public market vehicles rather than private market opportunities. Microsoft emerged as the most widely held stock among family offices at 77% ownership, followed by Amazon and Alphabet at 76%, Apple at 70%, and Nvidia at 69%. In alternative markets, allocations dropped to 46% from 49%, driven primarily by private credit fund markdowns, with 18% of recent vintage private credit funds posting net asset value write-downs.
Other asset classes remained relatively stable, with fixed income holdings steady at 8%, hedge funds at 7%, and other alternatives including commodities and collectibles at 6%. Private companies represented 15% of portfolios, making it the largest single alternative investment category.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI