Move over, white boys.

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.

“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.”

Study: Women, Minorities Make The Best Hedge Fund Managers [FINalternatives]

Comments (109)

  1. Posted by PING | February 22, 2011 at 7:28 PM

    Always knew it

  2. Posted by Guesty Guest | February 22, 2011 at 7:29 PM

    I completely disagree.

    -Every person on Wall Street

  3. Posted by Guest | February 22, 2011 at 7:30 PM

    Are you sure you are female?

  4. Posted by Guest | February 22, 2011 at 7:30 PM

    Are you sure you are female?

  5. Posted by Guest | February 22, 2011 at 7:30 PM

    Are you sure you are female?

  6. Posted by Guest | February 22, 2011 at 7:30 PM

    Are you sure you are female?

  7. Posted by Guest | February 22, 2011 at 7:30 PM

    Are you sure you are female?

  8. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 7:33 PM

    1 data point does not a statistically significant study make.

    - Guy who is threatened

  9. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 7:33 PM

    1 data point does not a statistically significant study make.

    - Guy who is threatened

  10. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 7:33 PM

    1 data point does not a statistically significant study make.

    - Guy who is threatened

  11. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 7:33 PM

    1 data point does not a statistically significant study make.

    - Guy who is threatened

  12. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 7:33 PM

    1 data point does not a statistically significant study make.

    - Guy who is threatened

  13. Posted by Financial_Servicer | February 22, 2011 at 7:36 PM

    “Women make fewer mistakes because they tend not to trade things that they don’t understand.”

    So they don’t trade anything?

  14. Posted by Chuddy | February 22, 2011 at 7:37 PM

    It is probably due to all of the government subsidies and tax breaks they get for being a minority. I also heard that they can use their WIC card to buy certain stocks at UBS and Jefferies.

  15. Posted by Guest | February 22, 2011 at 7:37 PM

    a – time period bias
    b – spurrious correlations
    c – one cannot draw conclusions about investmetn skill based on the HF universe which is comprised of wildly different strategies
    d – fast food and cleaning

    -guy who got an A in stats class

    -guy who knows

  16. Posted by Guest | February 22, 2011 at 7:42 PM

    Just changed my resume to kinda imply I’m an Eskimo woman.

  17. Posted by DitchDiggers | February 22, 2011 at 7:44 PM

    Jews are a minority…………….

  18. Posted by CoveredLong | February 22, 2011 at 7:46 PM

    Jennifer Love Hewitt?

  19. Posted by Richard Cripples | February 22, 2011 at 7:50 PM

    Nonsense, they trade recipes, gossip, coupons, “going out” clothes etc. I am not sure how they managed a 7.6% annualized return on those items.

  20. Posted by Richard Cripples | February 22, 2011 at 7:50 PM

    Nonsense, they trade recipes, gossip, coupons, “going out” clothes etc. I am not sure how they managed a 7.6% annualized return on those items.

  21. Posted by Guesty Guest | February 22, 2011 at 7:51 PM

    He’s right….we are! Swerve!

  22. Posted by Guest | February 22, 2011 at 7:53 PM

    I dispute the conclusions of this study as I was not included.

    -Watson

  23. Posted by NakedShort | February 22, 2011 at 7:53 PM

    “Study Says Gay Men Better At Giving Blow Jobs Than Straight Women”

    It might be true but you couldn’t pay me enough to find out.

    Same rules here.

  24. Posted by NakedShort | February 22, 2011 at 7:53 PM

    “Study Says Gay Men Better At Giving Blow Jobs Than Straight Women”

    It might be true but you couldn’t pay me enough to find out.

    Same rules here.

  25. Posted by guest | February 22, 2011 at 8:04 PM

    It’s called trading a non-traditional portfolio and we live longer too.

    Hot Hedge FundMom

  26. Posted by Anonymous | February 22, 2011 at 8:06 PM

    Listen Hoss, we also trade jokes about sexist pig-dog men with small (aka crippled) dicks. xoxo

  27. Posted by Guest | February 22, 2011 at 8:10 PM

    They’re called “Inuit,” Genius.

    Don’t worry, lots of people from the helmet quad take the short bus to Wall St every day. You’ll do fine.

  28. Posted by Guest | February 22, 2011 at 8:10 PM

    They’re called “Inuit,” Genius.

    Don’t worry, lots of people from the helmet quad take the short bus to Wall St every day. You’ll do fine.

  29. Posted by Guest | February 22, 2011 at 8:12 PM

    You little tartlet. Call me.

    –Jeff Epstein

  30. Posted by Guest | February 22, 2011 at 8:12 PM

    You little tartlet. Call me.

    –Jeff Epstein

  31. Posted by Financial_Servicer | February 22, 2011 at 8:14 PM

    Between longevity and shrinking endowments you guys really went straight to the lowest common denominator.

  32. Posted by Financial_Servicer | February 22, 2011 at 8:14 PM

    Between longevity and shrinking endowments you guys really went straight to the lowest common denominator.

  33. Posted by Financial_Servicer | February 22, 2011 at 8:14 PM

    Between longevity and shrinking endowments you guys really went straight to the lowest common denominator.

  34. Posted by Financial_Servicer | February 22, 2011 at 8:14 PM

    Between longevity and shrinking endowments you guys really went straight to the lowest common denominator.

  35. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 8:15 PM

    Pics or I’m redeeming

  36. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 8:15 PM

    Pics or I’m redeeming

  37. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 8:15 PM

    Pics or I’m redeeming

  38. Posted by Non-Entity Hedge Fund Manager | February 22, 2011 at 8:15 PM

    Pics or I’m redeeming

  39. Posted by English Kinnigget | February 22, 2011 at 8:15 PM

    What means this, “pig-dog”?

  40. Posted by XOXO | February 22, 2011 at 8:17 PM

    Thats bullshit.

    Truly very scrumptious,

    M. Whitney

  41. Posted by Guest | February 22, 2011 at 8:18 PM

    Inuit? Wtf does a CA based software company have to do with anything? Retard.

  42. Posted by The Lower 48 & Hawaii | February 22, 2011 at 8:19 PM

    No one cares.

  43. Posted by Finn Alexander | February 22, 2011 at 8:21 PM

    Comparing the massive sample of white hedge fund managers to the miniscule sample of minority hedge fund managers makes total sense if you are doing your statistical analysis in fingerpaint and crayon.

  44. Posted by Al Gore | February 22, 2011 at 8:24 PM

    1/2 Man, 1/2 Bear, 1/2 Pig

  45. Posted by Anonymous | February 22, 2011 at 8:28 PM

    Not trying to be racist/sexist/whatever, but can anyone actually name 10 minority-or-women owned HFs? I’m assuming whoever did the study did *not* include Jews in their definition of a minority, btw.

    -Confused WASP male

  46. Posted by Anonymous | February 22, 2011 at 8:28 PM

    Was that wrong of me? Should I not have done that?

  47. Posted by Anonymous | February 22, 2011 at 8:30 PM

    I’d tell you but I am afraid it would cause you to fart in my general direction. xoxo

  48. Posted by S*T*A*R | February 22, 2011 at 8:35 PM

    “Everybody meet Mr. Me Too”
    -Pharell

  49. Posted by S*T*A*R | February 22, 2011 at 8:35 PM

    “Everybody meet Mr. Me Too”
    -Pharell

  50. Posted by Guest | February 22, 2011 at 8:43 PM

    In finance?

  51. Posted by Anonymous | February 22, 2011 at 8:50 PM

    Oh right. Go all logical and factual on us, Perma. You white males never let us non-white males have a chance in the sun do you?

  52. Posted by Anonymous | February 22, 2011 at 8:50 PM

    Oh right. Go all logical and factual on us, Perma. You white males never let us non-white males have a chance in the sun do you?

  53. Posted by Anonymous | February 22, 2011 at 8:50 PM

    Oh right. Go all logical and factual on us, Perma. You white males never let us non-white males have a chance in the sun do you?

  54. Posted by Anonymous | February 22, 2011 at 8:50 PM

    Oh right. Go all logical and factual on us, Perma. You white males never let us non-white males have a chance in the sun do you?

  55. Posted by Anonymous | February 22, 2011 at 8:50 PM

    Oh right. Go all logical and factual on us, Perma. You white males never let us non-white males have a chance in the sun do you?

  56. Posted by Violent Femmes | February 22, 2011 at 8:52 PM

    We’re afraid you’d blister.

  57. Posted by Violent Femmes | February 22, 2011 at 8:52 PM

    We’re afraid you’d blister.

  58. Posted by Latino Hedge Funder | February 22, 2011 at 8:56 PM

    El Chupacabra!

  59. Posted by Latino Hedge Funder | February 22, 2011 at 8:56 PM

    El Chupacabra!

  60. Posted by Guest | February 22, 2011 at 8:57 PM

    @n&ked

    and you’ll die young with that schl0ng down your throat.

    Revealed: Oral s&* is ‘bigger cause of throat cancer than tobacco’

    http://tinyurl.com/63c7fxp

  61. Posted by Anonymous | February 22, 2011 at 8:58 PM

    +10. You made me guffaw. xoxo

  62. Posted by GGGuest | February 22, 2011 at 8:58 PM

    Dad?

    -Jr. AIG Quant

  63. Posted by GGGuest | February 22, 2011 at 8:58 PM

    Dad?

    -Jr. AIG Quant

  64. Posted by GGGuest | February 22, 2011 at 8:58 PM

    Dad?

    -Jr. AIG Quant

  65. Posted by Guest | February 22, 2011 at 9:00 PM

    i don’t like it when girls use the word fart. ditto for pee.

    clean up your act, trollop.

  66. Posted by Guest | February 22, 2011 at 9:00 PM

    i don’t like it when girls use the word fart. ditto for pee.

    clean up your act, trollop.

  67. Posted by Guest | February 22, 2011 at 9:00 PM

    i don’t like it when girls use the word fart. ditto for pee.

    clean up your act, trollop.

  68. Posted by Guest | February 22, 2011 at 9:03 PM

    “What do I care whose mouth it is?”

    - Warren Beatty

    (seriously)

  69. Posted by Lindsey | February 22, 2011 at 9:04 PM

    Too blasphemus couldn’t read

  70. Posted by GGGuest | February 22, 2011 at 9:05 PM

    wait…non white-male, or a non-white male, please don’t be the latter…I can’t have that happen again.

  71. Posted by CurrencyTrader | February 22, 2011 at 9:14 PM

    And by hedge fund manager we mean office manager.

  72. Posted by John Paulson | February 22, 2011 at 9:17 PM

    Vitiligo? Sex Change? No. I simply found an opportunity with an asymmetric payoff…

  73. Posted by Proud Black HF Manager | February 22, 2011 at 9:26 PM

    I know you white people be hatin’ because you cannot stand a black man running a hedge fund and doing better. I guess we tend to do better because we don’t go drinkin’ with our “bros” the night before, conduct bar fight at Minettas, and do lines of blow like a bunch of French school girls because we need to cope with our privileged white bread lives that are oh so tough.

    I’ll tell you what. Come to a couple jazz bars in Manhattan with some black folk and we will share our strategies which is just longing dumb things white people love like north face fleece, uggs, lululemon, lattes, nordstrom, pick-up trucks, and organic food.

  74. Posted by Guest | February 22, 2011 at 9:40 PM

    White and black people like different stuff? But Jay-Z is quoted as saying:

    But the allure of the game, keeps callin your name
    To all the Lauras of the world, I feel your pain
    To all the Christies in every cities and Tiffany Lanes
    We all hustlers, in love with the same thang

  75. Posted by Guest | February 22, 2011 at 9:44 PM

    you’re not gossip girl, curb your unreformed sorority girl use of xoxo.

    - i know you love me

  76. Posted by Guest | February 22, 2011 at 9:44 PM

    you’re not gossip girl, curb your unreformed sorority girl use of xoxo.

    - i know you love me

  77. Posted by I'm a dumbass | February 22, 2011 at 9:47 PM

    Actually gross returns trail by 150bps but net returns outperform because women and minorities earn less than 75% of what white males make.

  78. Posted by I'm a dumbass | February 22, 2011 at 9:47 PM

    Actually gross returns trail by 150bps but net returns outperform because women and minorities earn less than 75% of what white males make.

  79. Posted by I'm a dumbass | February 22, 2011 at 9:47 PM

    Actually gross returns trail by 150bps but net returns outperform because women and minorities earn less than 75% of what white males make.

  80. Posted by Anonymous | February 22, 2011 at 9:47 PM

    What was that about a place in the sun??

    -Kaiser Wilhelm

  81. Posted by Anonymous | February 22, 2011 at 9:47 PM

    What was that about a place in the sun??

    -Kaiser Wilhelm

  82. Posted by Guest | February 22, 2011 at 9:48 PM

    It’s PhaRRell.

    Warm regards,

    Skateboard P

  83. Posted by Guest | February 22, 2011 at 9:48 PM

    It’s PhaRRell.

    Warm regards,

    Skateboard P

  84. Posted by Guest | February 22, 2011 at 9:48 PM

    It’s PhaRRell.

    Warm regards,

    Skateboard P

  85. Posted by Guest | February 22, 2011 at 10:00 PM

    I thought Don Sussman owned all those women-owned firms? Did they adjust for his ‘Wizard of Oz’ bias?

  86. Posted by Anonymous | February 22, 2011 at 10:14 PM

    xoxo

  87. Posted by Anonymous | February 22, 2011 at 10:14 PM

    xoxo

  88. Posted by Anonymous | February 22, 2011 at 10:15 PM

    GGGood one…got me with a grammar fail. xoxo

  89. Posted by Anonymous | February 22, 2011 at 10:15 PM

    GGGood one…got me with a grammar fail. xoxo

  90. Posted by Anonymous | February 22, 2011 at 10:36 PM

    We trade Groupon links to spa promotions all day

    - PM at Tampon Capital Management LLC

  91. Posted by nos | February 22, 2011 at 10:53 PM

    Women and minorities are better at managing hedge funds? Okay, women we can identify. But who gets the “minority” status? Asians?, Jews?, Indians (dot)? Blacks? Hispanics?

    Meanwhile, where’s the female Warren Buffett? Where’s the Where are the “minority” Warren Buffetts?

  92. Posted by Mike | February 22, 2011 at 11:36 PM

    best thread i’ve read in a long time. pls keep up the good work…

  93. Posted by Anonymous | February 23, 2011 at 12:06 AM

    Well, there’s Lynne Tilton…

  94. Posted by trojan | February 23, 2011 at 12:18 AM

    don’t think you’ve visited Manhattan

  95. Posted by trojan | February 23, 2011 at 12:27 AM

    to the latter stuttered question i say: carlos slim

  96. Posted by Eee | February 23, 2011 at 1:45 AM

    asians and indians dont count as minorities

  97. Posted by Guest | February 23, 2011 at 3:20 AM

    all kidding aside, if you don’t think this is a legitimate problem, then you should probably eat shit and die.

    -minority woman who has dealt with brutally incompetent WASPs and Jews her entire life, and who also puts up alpha every year, yet still can’t secure investors at even a quarter of the rate you can from within in the good ol’ boys club

  98. Posted by oneupper | February 23, 2011 at 3:26 AM

    you forgot

    e- vacuously true

    -guy who got an A in real analysis as well

  99. Posted by Guest | February 23, 2011 at 3:34 AM

    when it comes to issues like this, don’t you think that if the small sample size is performing, that they’ve at least earned the right to become a larger sample size?

    http://sportsillustrated.cnn.com/2011/football/nfl/super-bowl-2011/01/30/scorecasting/index.html

  100. Posted by Bout2BHated | February 23, 2011 at 3:35 AM

    Women trade things they understand? Those returns make sense now. They were probably just parking cash in savings accounts.

  101. Posted by Bout2BHated | February 23, 2011 at 3:35 AM

    Women trade things they understand? Those returns make sense now. They were probably just parking cash in savings accounts.

  102. Posted by Guest | February 23, 2011 at 5:34 AM

    eight hours after the post, and the best you could come up with is a less funny version of Financial_Servicer’s joke. given how pathetic your attempt at humor was, i have to assume you were equally pathetic in ‘liking’ you own comment.

  103. Posted by Scarred by snagglepuss | February 23, 2011 at 3:05 PM

    I appreciate you outing me in public, but while I was listening to the wind howl from the sound of throwing my toothpick down your hallway, I think I lost my watch in there.

    -guy who lost his watch in there

  104. Posted by Salty? | February 23, 2011 at 3:15 PM

    Typically when I perform, my sample size is quite large.

    - load blown

  105. Posted by Bigchaw | February 23, 2011 at 3:16 PM

    Actually just Indians (feather).

    -Squanto

  106. Posted by Yourcommentsucked | February 23, 2011 at 3:18 PM

    I liked his comment also.

    - guy with nothing original to say but wants in on the action.

  107. Posted by Guest | February 23, 2011 at 3:31 PM

    Phew! That was a close call.

    – Brutally incompetent Catholic guy

  108. Posted by $50 Hedge Fund Investor | February 23, 2011 at 6:16 PM

    Don’t forget Sarah Bernett!!!

  109. Posted by Anonymous | February 23, 2011 at 6:31 PM

    Umm… Carlos Slim isn’t an American citizen, champ. Pretty sure Mexicans aren’t a minority *in Mexico*

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