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NEWS STRAIGHT OR SLIGHTLY BENT: Women in Finance

October 10, 2014

As I have written here and in many other publications, I believe the world desperately needs men to turn over the reins of economic and political leadership to women. While in times past it may have been sensible and properly celebrated in song and story for groups of under-employed young men to raid the lands of milk and honey, kill all the able-bodied men and enslave their women and children claiming that either their god or their inherent superiority justified it, modern technology makes this ideology inherently dangerous to the survival of humanity. The risk taking gene so useful in the past seems perilous now.

Even in that last vestige of unvarnished aggression and greed, the modern derivatives market, recent studies show that women outperform men.
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In a review of returns from January through November 2013 by Rothstein Kass, hedge funds run by women returned almost 10 percent on the funds invested while those run by men barely topped 6 percent.

According to Meredith Jones, a director at Rothstein Kass:

“There have been studies that show that testosterone can make men less sensitive to risk-reward signals, and that comes through in this study.”

The numbers are even more eye-popping for the six years from January 2007 through June 2013. Hedge funds run by women returned 6 percent compared with a 1.1 percent loss of the HFRX Global Fund Index. The Standard & Poor’s 500 index gained only 4.2 percent during the same time.

All which shows that not only do women hedge fund managers out perform men significantly but also beat the index which some male economists maintain is impossible over time.

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