UBS Survey Finds Family Offices Increase US Stock, Hedge Fund Bets Amid Trade War Risks

Ultra-wealthy family offices are increasingly focusing their investments on the U.S. market, showing a strong home bias with 86% of their portfolios in North America, despite concerns about global trade wars and fiscal uncertainty. According to UBS's 2025 Global Family Office Report, global trade tensions remain the top risk, prompting these family offices to favor more active strategies, including increased allocations to hedge funds and liquid markets, while reducing exposure to cash, real estate, and private equity. The family offices are also boosting their investments in developed market equities and precious metals as part of their diversification efforts. Market volatility has been driven by aggressive U.S. tariff policies, but recent trade truce developments with China and tariff postponements have provided some relief, though uncertainty about long-term trade policies persists. UBS analysts expect U.S. tariff rates to stabilize at higher levels than before, contributing to ongoing market caution. Overall, family offices are leveraging their deep capital pools to act opportunistically during this period of economic and geopolitical uncertainty.