Women-Run Funds Outperforming Those Managed by Men

September 25, 2017 James Heinsman In the News

According to the HFRX Women Index, a list that examines the success (or lack thereof) of hedge funds run by women, revealed that women-run funds outperformed male-run funds by 2.5 times. This finding is one more bit of evidence that the hedge fund sector, which has been labeled as “male, pale and stale,” could use more women portfolio managers.

Women-run funds returned on average 9.95% during the first seven months of 2017, while a broader grouping of funds returned 4.81% for the HFRI Fund Weighted Composite index.

Head of personal investing at Legal & General Investment Management, Helena Morrissey, is wary of the figures, since HFRX data looks like it was collected in a shorter period. But she added that other research has confirmed that women are “at least as good as men” when it comes to investing.

“We definitely need more women in fund management, because we bring slightly different approaches to analysis and risk. Our diversity is complementary,” she said.

In one study done at the University of California, Berkeley, which examined 35,000 households from 1991 to 1997 with large investments, men earned annual risk-adjusted net returns that were 1.4% less than those earned by women. The difference was due to men’s penchant for trading more often.

Helena Morrissey, HFRX Women Index, Legal & General Investment Management, UC Berkeley,

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