According to the latest CNBC Family Office Portfolio Tracker, single family offices raised their stock allocations to 37% in the second quarter, up from 34% in the first quarter, marking the largest increase in several years. This shift indicates a growing confidence in public equities, despite concerns about market bubbles.
Eric Poirier, CEO of Addepar, noted that this increase is the most substantial quarter-on-quarter change observed in the past three to four years. The rise in stock holdings coincided with a strong performance in the stock market, with the S&P 500 gaining approximately 15% during the quarter.
Conversely, family offices reduced their allocations to private markets and real estate, with a 3 percentage point decline in alternative investments, which now account for 46% of their portfolios. This decline was primarily attributed to markdowns in private credit valuations, where 18% of recent vintage funds reported decreases in net asset values.
The top stocks held by family offices included Microsoft, Amazon, Alphabet, Apple, and Nvidia, reflecting a strong preference for technology and AI-related companies. Looking ahead, Poirier emphasized that interest rates and the fixed income environment will be critical themes to monitor in the upcoming quarter