Recent studies have found a correlation between gender and hedge fund performance. Contrary to hedge fund legend Paul Tudor Jones’ 2013 controversial statement, “You will never see as many great women investors or traders as men. Period. End of story,” more investors seek to invest in female-managed funds.
Evidence supporting this include a study by consultants Rothstein Kass (June 2013) that found that in the preceding 6 ½ years, funds majority-owned by women returned a gain of 6% as compared to the industry-wide loss of 1.1%.
Possible reasons for this phenomenon include an inherent difference between men and women in risk adversity. Inspection into hedge fund performance circa the 2007 financial crisis found that female-managed funds avoided the worst of the crash. This suggests that females are more risk-averse and likely to stick to safer, tried-and-tested investment strategies.
Regardless as to whether gender really does influence performance, managers such as Maria Vassalou of the PWP Global Macro Fund at Perella Weinberg views that the correlation indicates a promising future for female investors, sharing: “This is an industry which is driven by performance, and numbers are gender-blind. So, I think it’s a great place for women to compete.”
Contributor: Elaine Chen