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

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note