Female-Run Hedge Funds Outperform the Industry

Alden Wicker
Posted

female-run hedge fundsFirst it was start-ups. Now hedge funds, a subsection of investment banking known for high risk and high return, have become the latest industry to recognize the power of female investing smarts.

According to an index from the professional services firm Rothstein Kass, female hedge fund managers produced a return of 8.95% from the beginning of 2012 through the third quarter. But the HFRX Global Hedge Fund Index, released by Hedge Fund Research, only grew by a 2.69% net return through the same time period.

The rest of a Rothstein Kass report, based on responses from 366 senior women in the alternative investment industry, said women might be able to outperform men in managing hedge funds because they are more risk averse and are better able to avoid market volatility.

Despite their high performance, only 16% of the respondents had funds run by women. Even smaller percentages of venture capital firms and private equity firms were run by women: 13% and 12% respectively. Many respondents used the word “old boy’s club,” to describe why there was such a gender disparity, something we’ve reported on before when it comes to working on metaphorical Wall Street.

This news makes all all the more excited to see how the female CEO corporate index does!