Study Shows Women Beat Men As Hedge Fund Managers

Nov 20 2013 | 12:47pm ET

The evidence for the superiority of female hedge fund managers is growing.

Another study of sex-based performance finds that women outperform their male peers in the alternative investments industry. The latest, from Rothstein Kass, shows that in the five years ending last September, an index of 67 woman-owned funds beat the broader HFRX Global Hedge Fund Index by a wide margin. The women's index returned 3.6% over the period, while the broader index lost 3%.

The reason? Women take less risk and hold on to their investments longer.

"Women take lower risks because they do more research and are more comfortable holding their securities longer," Camille Asaro, a former Rothstein Kass principal now with KPMG. But, she added, "it's not necessarily a gender thing. You always have to make sure that the manager is right for your strategy."

Despite the better performance, women still make up only a tiny fraction of hedge fund managers—3.3%, according to Barclays.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...