Almost seventy-five per cent of US single family offices invest in hedge funds and 60 per cent plan to increase allocations to alternative investments in the next 12 months, according to a new survey from CPA Firm Rothstein Kass.

"On the Rise," the latest research white paper sponsored by the firm highlights the growing relationship between the alternative investment community and SFOs and was co-authored by Russ Prince and Hannah Shaw Grove both experts on behaviors and finances of high-net-worth individuals, according to the company.

SFOs with hedge fund allocations hold an average of 3.2 hedge funds or fund-of-funds in their portfolios says the report and nearly 70 per cent of these report that these investments have met or exceeded performance expectations over the past 12 months. Over 80 per cent of respondents reported 24 month performance was “as expected” or better

But more than 70 per cent of SFOs with hedge fund allocations report "lack of transparency" as a key concern.

Other concerns sited include lock-up periods (60 per cent), style drift (55 per cent) and fraud (37 per cent).