Family offices are looking to increase exposure to hedge funds in preparation for the potential end of the bull market, according to Cambridge Associates.

The global investment firm said this strategy has worked during previous periods of market stress: While global equities returned -46.2 percent during the 2000-2002 bear market, hedge funds preserved capital with a -0.4 percent return.

During the global financial crisis period of 2007-2009, hedge funds did not preserve capital as effectively, but did compare favourably with the 54.9 percent fall in global equities, delivering a -21.9 percent return.

Cambridg...