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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR