Women Hedge Fund Managers Outperform Men, Report Finds
Female hedge fund managers are still outperforming their male rivals, yet women are still underrepresented in the game of getting funds and achieving that oh so important portfolio.
The latest report from Rothstein Kass, “Women in Alternative Investments: A Marathon, Not a Sprint For women fund managers, endurance trumps pace,” confirms what most of us already know. There can be differences in the investment style of some women and men. And even though women hedge funds may perform well in doesn’t necessarily translate into a steady stream of funds.
The scarcity of such funds is itself an obstacle, a “chicken or the egg” problem, said Kelly Easterling, an audit principal at Rothstein Kass, the Times reported.
“Without a large supply of funds, it’s difficult to achieve appropriate portfolio diversification or, for that matter, put enough money to work to move the performance dial,” she said in a statement quoted in the report. “On the other hand, until there is more money flowing to women-owned and -managed funds, it’s unlikely that there will be a stampede of new fund launches.”
From Jan. 1, 2013, through the end of November, the small number of hedge funds around the world run by women returned 9.8 percent while the HFRX Global Hedge Fund index was up only 6.13 percent
While highlighting the accomplishments of women in hedge funds, private equity and venture capital, the report also explores persistent gender disparities on Wall Street.
If women are performing well, why aren’t women advancing more on Wall Street? The survey suggests that the vast majority of the top jobs are held by men. Of the women surveyed, only 15.5 percent said their firm was owned or managed by a woman. Among hedge funds in particular, 21.4 percent were owned or managed by women.
But there is good news, the number of women who say gender has hampered their success has dipped—from two-thirds in the 2013 report to 61 percent this year. Also, 17.5 percent of the 440 senior women surveyed said they have a goal of managing their own fund within the next five years, up from 14.2 percent in last year’s report.
Watch Meredith Jones, Director of the Rothstein Kass Institute, discuss the future of women on Wall Street and what you can do to shrink the gap in the video above.
