Hedge funds run by women outgain male counterparts in 2012

January 10, 2013 09:36 AM
Trade like a girl.

Although last year was fairly dismal for the hedge fund industry, there apparently was one bright spot: Hedge funds managed by women.

According to a report released today by Rothstein Kass, female hedge fund managers produced a return of 8.95% through the third quarter of 2012. By contrast, the HFRX Global Hedge Fund Index, released by Hedge Fund Research, logged a 2.69% net return through September.

The report, which reflects the responses of 366 senior women in the alternative investment industry, illustrates the ongoing gender disparity within the financial sector while highlighting the achievements of successful women.

According to the report, female managers can have particular advantages over their male compatriots including being more risk-averse and better able to avoid volatility. “Investing in these types of funds is a smart business decision, rather than one that just feels good,” says Meredith Jones, a director at Rothstein Kass and the author of the report.

Still, the report highlights that funds with women in high-ranking positions are the minority. Only 16% of the survey respondents said their firms were owned or managed by women. Further, 18% of the firms surveyed had female chief investment officers, and 16% had chief executives who were women.

Although women remain in the minority within the financial world, 59% of the women surveyed said they believe there will be more women in the industry in 2013 and beyond.

Rothstein Kass report

About the Author

Michael McFarlin joined Futures in 2010 after graduating summa cum laude from Trinity International University, where he majored in English/Communication. With the launch of the new web platform, Michael serves as web editor for the site and will continue to work on the magazine, where he focuses on the Markets and Trading 101 features. He also served as a member of the Wisconsin National Guard from 2007 to 2010. mmcfarlin@futuresmag.com