- Advertisement -
- Advertisement -

Women-Led Hedge Funds Outperform, Despite Prejudice

- Advertisement -

 

Stockholm (HedgeNordic) The HFRI Women Index has returned an average of 4.4% over the past 5 years, outperforming the 4.2% return of the HFRI Fund Weighted Composite Index, which takes into account all strategies and genders, according to the Financial Times. The conclusion, supported by earlier academic studies, is simple: hedge funds run by women outperform those run by men in the longer term. This is despite an underperformance of 2.2% to 5.5% on the HFRI Women Index and the Weighted Composite Index respectively this past year.

The question, then, is why there are so few women in the industry, comparatively speaking. Fewer than one in 20 hedge funds employ a female portfolio manager. The root of the problem is the obstacles faced by women when trying to raise money from investors, according to Jane Buchan, chief executive of Paamco, a $24 billion fund of hedge funds. “Women have substantially less assets. That is a real issue, and it is not a performance issue… To get that same level of assets as a man, you have to outperform by 200 basis points,” Ms Buchan told the FT.

Only 439 hedge funds employ a female portfolio manager, compared with the 9,081 that employ a male investment manager, a study from Northeastern published last year in the Review of Financial Economics found. 79% of U.S. hedge fund professionals believe it is harder for women to attract capital from investors than for their male counterparts, the accounting firm KPMG found last year. As it is harder for women to raise assets when branching out on their own, the funds that do thrive tend to outperform, according to the Northeastern research.

Picture: (c) ImageFlow—shutterstock.com

 

 

 

 

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Improved Environment for Single Shorts and Options Protection

Stockholm (HedgeNordic) – Marcus Plyhr’s cautious stance on markets helped Norron Select minimize losses in 2022, closing the year with a low single-digit decline...

Strong May Performance for Nordic Hedge Funds

Stockholm (HedgeNordic) – The Nordic hedge fund industry is experiencing one of its strongest years on record, marked by seven consecutive months of positive...

New Billion Club Member

Stockholm (HedgeNordic) – The Nordic hedge fund industry is welcoming a new member to its exclusive €1 billion club: Asgard Fixed Income Risk Premia...

Coeli Partners with Peter Norhammar for Real Estate Fund Launch

Stockholm (HedgeNordic) – Swedish asset manager Coeli is partnering with real estate specialist Peter Norhammar and NRP Anaxo Management to launch a new long/short...

Borea Welcomes New Majority Owner

Stockholm (HedgeNordic) – Norwegian fund boutique Borea Asset Management has a new majority owner. A consortium of independent banks within Frendegruppen, Norway’s second-largest banking...

Estlander Awaiting the Black Swan

Stockholm (HedgeNordic) – Finnish systematic asset manager Estlander & Partners has been in the business of providing so-called “crisis alpha” for decades through one...

Allocator Interviews

Latest Articles

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -