Are you a white male?

Discussion in 'Wall St. News' started by ChkitOut, Feb 22, 2011.

  1. Well I don't want you investing my money cuz you suck!! :D

    Study: Women, Minorities Make The Best Hedge Fund Managers

    Feb 22 2011 | 11:23am ET

    Women and minorities make up a tiny fraction of hedge fund managers, but they are among the best at what they do, according to a new report.

    Hedge Fund Research said that hedge funds run primarily by women and minorities have bested by a wide margin industry averages, and did particularly well in 2008, when the average hedge fund was battered by the financial crisis. In that year, the HFRX Diversity Index, which includes hedge funds that are majority-owned by women or minorities, lost just 5.41%; the average hedge fund lost more than 20%.

    But it isn't just during the bad times that the minorities are better than the majority: The Diversity Index has enjoyed an annualized return of 7.6% over the last three years and 9.1% over the last five, compared to a 2.04% annualized loss over three years and a 0.46% annualized gain over five for the HFRX Global Hedge Fund Index.

    The HFRX Diversity Index is split roughly evenly between women- and minority-owned firms.

    "Women make fewer mistakes because they tend not to trade things that they don't understand," Galtere founder Renee Haugerud told Financial News. "They have less of the very large catastrophic downside losses."
  2. Locutus



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  3. No wonder they keep saying Indians are the best traders
  4. 1) They aren't the "best", they're the "least worst". :p
    2) How do they compare to the S&P-500? :confused:
    3) They make fewer "mistakes" probably because they are mimicking the S&P-500 or overweighted in fixed income. :eek:
    4) They may perform "well" merely because they are too risk averse in bear markets. More data needs to be compiled which will show they tend towards the performance of men as their assets under management increase. :(
  5. Very interesting point...
    And it makes sense too.

    Thanks for sharing.
  6. "Behind every successful woman hedge fund manager there is a genius man"
  7. Women make fewer mistakes because they tend not to trade things that they don't understand,"

    The comprtoller of Alabama said the same thing. "Why would I invest in something I can't spell." When asked to purchase derivatives.
  8. zing! :p
  9. "This is a man's world
    but it wouldn't be nothing, nothing
    not one little thing
    without a woman or a girl"
  10. piezoe


    I did not find any mention of what percent of hedge funds are managed by women or minorities, not did i find how minorities are defined for the purposes of the article. (Are Jewish men a minority? EMRGlobal says he is a "Masonic Jew"! I'm pretty sure that's a valid minority. :D ) This article is going into my circular file along with the book of Revelations.

    #10     Feb 22, 2011