Tuesday, January 29, 2013

How to get a better return on your investments

Need a better investment strategy? Hire a woman to invest your money! So says a piece in co.EXIST:

Male hedge fund managers, watch out for your jobs: a new report from financial services firm Rothstein Kass has revealed that female hedge fund managers significantly outperform their male counterparts. In the third quarter of 2012, they scored a net return of 8.95% (according to the Rothstein Kass Women in Alternative Investments Hedge Index) compared to a 2.69% net return overall on the HFRX Global Hedge Fund Index. But at the same time, women make up less than 20% of all C-suite members in the firms polled. Not enough people have yet woken up to the fact that it makes sense to hire more women in senior positions.

“The fact that women-owned or managed hedge funds have been able to handily outperform their male counterparts is not particularly surprising,” said Meredith Jones, the study author, in an interview with Business Insider. “There have been a number of studies that show women investors to be more risk adverse, and therefore potentially better able to escape market downturns and volatility.” The report goes on to say: "… if women do in fact have a different, more risk-averse investing profile, then at least theoretically, their returns, particularly in difficult markets, should be higher than those of their male counterparts." And that seems to be what’s happening.

Read more here: http://www.fastcoexist.com/mba/1681284/need-a-better-investment-strategy-listen-to-a-woman

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