Hedge Fund Women Better Than Men
When it comes to macho investing hedgies often get the accolades…
Traders in investment banks have the nice soft pillow of government guarantees to fall back on when the shit hits the fan and institutional investors, pension funds and the like are not really in the markets for a thrill ride. But hedge funds traders – the modern gun slingers in the wild west of finance…
Thanks to natural doses of testosterone, it is men who traditionally take the biggest risks but that’s not always a winner.
Business Week: A new study by Hedge Fund Research found that, from January 2000 through May 31, 2009, hedge funds run by women delivered nearly double the investment performance of those managed by men. Female managers produced average annual returns of 9%, versus 5.82% for men and, in 2008, when financial markets were cratering, funds run by women were down 9.6%, compared with a 19% decline for men.
Ok, so running hedge funds is not just about risk taking, there’s a large part dedicated to risk management and it appears that’s where the ladies might have an edge.
