With a keen focus on diversifying assets to protect and grow investments, the hedge fund industry has yet to take a page out of its own playbook to diversify – well, itself. As hedge funds continue to grapple with performance lags with the overall industry under performing the S&P 500 for the eighth year in a row, it’s important that funds take a closer look at how women can play a crucial role in shaping the success of the industry.
A report conducted by trade publication, CIO, noted that only 3% of senior investment roles in hedge funds were held by women in 2012. While we are seeing more women involved in the funds industry now than ever before, there’s a noticeable trend of women taking on roles predominantly in middle management and administrative functions.
Women are certainly present in compliance, marketing, and operations roles within funds, but noticeably absent from investing-focused roles. As a recent Business Insider story noted, “the benefits of diversity in investor outcomes cannot be denied. There is a small number of women at the C suite level but not the number that could or should be.”
The data tells us that promoting the success of women in investment roles is good for the firm and therefore the industry. According to data from Hedge Fund Research Inc., funds owned or managed by women have returned an average of 59.43% since 2007 – contrast that with 36.69% average performance across the entire industry.Both women and men should help women progress up the ranks of the funds industry, it’s not only good for business, it’s good for society. In a society where women are increasingly entering the STEM space at young ages, it’s important that the financial industry as a whole, and the hedge fund industry specifically, join together to promote the success of all bright minds – regardless of gender.
In a survey from KPMG, female hedge fund managers reported that raising capital was one of the biggest obstacles to launching their own fund, whereas 72% of investors cited a lack of female talent to invest in.
Is it just that women are hard to find in the space? Or are they not running in the right circles? With the hedge fund space – often more than other financial firms – there is much attention paid to ‘who you know’ and one’s network to determine future success at a firm. Women in Funds promotes the sponsorship, mentoring, and visibility of women in the industry, helping create and nurture a valuable network of bright female minds in the industry.
Studies show that women are under sponsored within this sector. Women in funds promotes mentoring and sponsorship of young female managers, explores opportunities that help them develop their skills, and offers the visibility they need to advance—not only internally but also externally. By exploring where best to place efforts to help women advance in the funds industry in the future, Women in Funds plays a crucial role in shaping the success of the hedge fund industry as a whole.
Join us for networking and lively conversation about how the industry is evolving and how women can help shape that evolution, join us in Boston on 26th October at FundForum NextGen Distribution for the Women in Fund Distribution breakfast.
Register for the Women in Fund Distribution breakfast here.
For more information about Women in Funds, follow us on Twitter @Womeninfunds or join in the conversation via #WomeninFunds.