Why Billionaire Families Are Piling into U.S. Stocks—and Why You Should Too

The world’s wealthiest families are placing their bets on U.S. equities like never before. According to UBS’s 2025 Global Family Office Report, 86% of American family offices now allocate their capital to North America—a staggering increase from 74% in 2020—while simultaneously scaling back private equity holdings. This strategic reallocation isn’t just about chasing returns; it’s a calculated move to harness liquidity, navigate geopolitical risks, and tap into growth themes like artificial intelligence, energy innovation, and healthcare breakthroughs. Here’s why retail investors should follow suit.

The Great Shift: From Illiquidity to Liquidity

Family offices are fleeing private equity’s constraints. After peaking at 35% of portfolios in 2023, U.S. allocations to private equity have plummeted to just 27% in 2025, with further cuts planned. Delays in exiting private deals, rising interest rates, and a sluggish capital markets environment have made private equity less attractive. But this isn’t a rejection of risk—it’s a pivot to better risk.

Public equities are winning the race. Global family offices have boosted developed-market equity allocations to 29% in 2025, with U.S. investors targeting 32%. The reason? Liquidity. Public markets offer instant access to capital, a critical advantage when facing a potential trade war (the top concern for 70% of family offices) or market volatility.

Why the U.S. Remains the “Home Run”

The “home bias” isn’t just about familiarity—it’s about infrastructure. The U.S. stock market, the largest and most liquid in the world, gives investors unparalleled exposure to sectors driving the next decade of growth:

1. Artificial Intelligence: U.S. tech giants like NVIDIA (NVDA) and Alphabet (GOOGL) dominate AI innovation.
2. Energy Transition: Companies such as Tesla (TSLA) and NextEra Energy (NEE) are reshaping energy systems.
3. Healthcare Breakthroughs: Biotechs like Moderna (MRNA) and Johnson & Johnson (JNJ) are advancing treatments at a blistering pace.

Source: UBS Equity Research

The U.S. market’s depth allows investors to bet big on these themes without locking up capital for years. Meanwhile, Asia-Pacific—though growing—still lacks the same scale and regulatory certainty.

Risk Mitigation: Liquidity as a Shield

Family offices aren’t naive about risks. With trade wars looming and debt concerns simmering, they’re layering in hedges: 40% are using active managers, 31% are deploying hedge funds, and 21% are eyeing gold. But the core of their strategy remains public equities. Why?

• Speed: Public markets let investors pivot quickly amid geopolitical shocks.
• Diversification: U.S. equities span industries and geographies, reducing reliance on any single asset.
• Innovation Access: Public companies, especially in tech and healthcare, are the R&D engines of the global economy.

The Call to Action: Follow the Billionaires’ Lead

The data is clear: Family offices are doubling down on U.S. equities, and there’s no better time to join them. Here’s how to position your portfolio:

1. Buy into Themes: Allocate to ETFs tracking AI (e.g., ARKQ), energy transition (e.g., XLE), and healthcare innovation (e.g., XLV).
2. Prioritize Liquidity: Avoid illiquid private deals; stick to public equities for flexibility.
3. Hedge Smartly: Pair equity exposure with gold (e.g., GLD) or inverse ETFs (e.g., SCHO) to weather volatility.

The U.S. market’s resilience is its superpower. Even as trade wars loom and interest rates rise, its depth and liquidity will continue to outperform. Don’t be left behind—act now before the next wave of allocations pushes prices higher.

The billionaires aren’t wrong. They’re just better informed.