Heightened market volatility and economic uncertainty stemming from surging inflation and rising interest rates, not to mention ongoing geopolitical tensions, have prompted UBS Group AG’s family office clients to significantly increase their allocations to hedge funds, according to a report by Bloomberg.
Heightened market volatility and economic uncertainty stemming from surging inflation and rising interest rates, not to mention ongoing geopolitical tensions, have prompted UBS Group AG’s family office clients to significantly increase their allocations to hedge funds, according to a report by Bloomberg.
The report cites new research released by the Swiss bank on Wednesday as revealing that family office clients upped their allocations to the sector to 7% last year, almost double the level seen in the previous year.
Half of the 230 family offices that responded to a recent USB survey are currently invested in hedge funds, up from 43% in the previous year, while almost three-quarters expect those investments to either meet or exceed performance goals in the next six months.
The most popular strategies are global macro, multi-strategy and long/short equity funds.
