Family offices, which manage private investments for ultra-high-net-worth families, significantly increased their stock market exposure in the second quarter of 2026. According to CNBC’s Family Office Portfolio Tracker powered by Addepar, these single family offices raised their equity allocation from 34% to 37% on average, marking the largest quarterly increase seen in several years. This move signals confidence in the stock market, especially driven by excitement around artificial intelligence-related trades, despite concerns about market concentration and potential bubbles.

At the same time, family offices reduced their exposure to private markets and real estate, with holdings in private companies, private equity, venture capital, and private credit collectively decreasing by three percentage points. This pullback largely resulted from markdowns in private credit funds and real estate valuations, reflecting a cautious reassessment of these asset classes rather than a change in investment flows. Fixed income and hedge funds allocations remained relatively stable, and cash positions saw a modest decline, indicating a preference to deploy capital toward equities.

Prominent stocks favored by family offices during this period included technology giants such as Microsoft, Amazon, Alphabet, Apple, and Nvidia. The enthusiasm for public equities appears consolidated around these leading companies, underlining a thematic bet on sectors benefiting from AI innovations. Meanwhile, alternative investments including commodities and collectibles held steady at about 6%, and private companies still composed 15% of overall portfolios, underscoring the diversified yet equity-centric approach of family offices.

Looking forward to the third quarter, the evolving interest rate environment and fixed income landscape will be critical areas for family offices to monitor. With public market equities continuing to dominate their allocations, family offices are poised to closely watch market dynamics and macroeconomic trends that could influence bond yields and credit markets. The data highlights a strategic shift towards public equities complemented by a cautious stance on less liquid alternatives amid ongoing market uncertainties.