Hey finance bros, we bring glad tidings.
According to science, you can believe your eyes. It doesn't just seem like everyone around you on The Street looks just like you and your brothers from ΔΚΕ, they actually do!seem like everyone around you on The Street looks just like you and your brothers from ΔΚΕ, they actually do!
Fewer than 10% of asset management firms are owned by women or racial minorities, despite performing on par with firms owned by white men, according to a study released Monday. This includes firms that manage mutual funds, hedge funds, private equity funds and real estate funds.
We hope you were sitting down for that...
The study, conducted by The Knight Foundation, Harvard Business School Professor Josh Lerner and Bella Private Markets, considered firms with at least 25% ownership held by women or minorities.
And guess which particular sector came out looking particularly "School Ties"...
Hedge funds: Female-owned firms represent 4.6% of all firms and manage 1.5% of total hedge fund AUM. Minority-owned firms make up 8.9% of all firms and manage 2.7% of AUM. The study found no difference in performance and that 26% and 28% of underrepresented firms, respectively, had top-quartile returns.
So, we have concrete proof that finance, and hedge funds in particular, are run overwhelmingly by mediocre white dudes.
We are also concerned about how to weather the shock and go on with our day.