Family offices significantly increased their allocation to publicly traded stocks during the second quarter, according to data from the CNBC Family Office Portfolio Tracker powered by Addepar. Single family offices raised their stock holdings to 37% of total portfolios, up from 34% in the preceding quarter, marking the largest quarterly increase in several years.
The shift reflected a continued bullish outlook on equities and the artificial intelligence sector despite broader concerns about market concentration and potential bubbles. Addepar CEO Eric Poirier characterized the move as evidence that family offices had grown more comfortable with higher allocations to public equities. The data analyzed by the tracker aggregates actual portfolio holdings from hundreds of family offices, representing more than $1.4 trillion in combined assets.
The increase in stock allocations was accompanied by reduced exposure to alternative investments. Family office holdings in private companies, real estate, private equity, venture capital, and private credit declined by 3 percentage points collectively. Cash holdings dropped by less than 1 percentage point as investors deployed capital more actively. Notably, family offices chose not to rebalance despite the equity gains, instead allowing stock allocations to grow as a proportion of their portfolios, signaling a long-term bullish stance.
While market movements contributed substantially to the shift, with the S&P 500 rising approximately 15% during the quarter, the choice not to rebalance suggested intentional positioning toward equities. The technology sector dominated family office holdings, with Microsoft owned by 77% of tracked family offices, followed by Amazon and Alphabet at 76%, Apple at 70%, and Nvidia at 69%. Private market allocations fell to 46% from 49%, driven largely by markdowns in private credit valuations, with 18% of recent vintage private credit funds posting asset value reductions.
Looking forward, portfolio trackers identified interest rates and fixed income dynamics as key areas to monitor in the subsequent quarter, as the broader fixed income environment remained active.
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