According to an article in The Business they do. A group called Pomegranate Capital identified 250 funds run by women and they came to this conclusion. The research showed that men tend to make rash judgements or “shoot from the hip” and therefore have big gains and losses with lots of volatility. Women on the other hand showed more consistent returns. They also pointed out that women had more trouble finding funding than men. Here’s my take on this “research”. First of all, I do agree that women are just as capable of running a hedge fund as a man. I do think the data is skewed from the fact that it takes an extra good women to rise to the top of a hedge fund. Only the best make it from the female side where it seems like any man with 6 high powered friends runs a hedge fund. In short, you’re dealing with the cream of the crop. The pressure on females to succeed is enormous. The trading world is filled with male chauvinist who would like nothing more than to see a woman fail. Secondly, most women who have raised themselves to such a high level put extra pressure on themselves to do better than their male counterparts. A typical female personality is adverse to risk which could help or hurt them in this field. In order to achieve a higher return one must take on a higher risk. Most women prefer consistent but lower returns. Returns most people like, but hedge fund investors tend to want a bit higher return in exchange for knowingly accepting more risk. Investors know there are plenty of funds willing to take their money. In this research. I’m sure the women were better overall but I don’t believe the top 20 women would have the same returns as the top 20 men. One last thing. As a hedge fund get large it actually becomes more difficult to achieve high returns because of the large trades that must be put on. The most profitable hedge funds are the medium sized funds. There is a reason many hedge funds close quickly. Once one makes a good return, everyone wants to invest but the hedge fund manager realized too much money becomes a problem. There aren’t any women with this problem,…yet. Women are changing. They have always been smart and more well rounded than men. What’s changed is that opportunities have opened up and women are ditching the passive sidekick to a man and becoming super Mom. And you know what? I dig it.

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