A new survey from Rothstein Kass indicates that investors are hesitant to invest in women-managed hedge funds despite outperforming their male counterparts.
According to Rothstein’s third annual “Women in Alternative Investments: A Marathon, Not a Sprint” report, only 2% of respondents expect increase allocations to women-owned or women-managed funds.
Comparatively, nearly 74% anticipate that their allocations to women-managed funds will remain the same in 2014, while approximately 93% of investors stated they had no specified mandate to invest in women-owned or managed funds.
The lack of women-owned or managed funds was cited as one of the most common reasons why investors do not have a specific women-run fund investment mandates, but the survey shows that the number of women planning to launch their own funds is increasing.
Rothstein Kass director Meredith Jones explained that women typically “perceive risk differently than men and tend to manage their portfolios accordingly," which "results in less performance slippage, a diminished tendency to sell at the bottom, and a more consistent application of their strategies.”
Rothstein Kass surveyed 440 senior women in the alternative investment industry, including fund managers, investors and service providers, as well as proprietary performance analysis of women-owned or managed private equity and hedge funds, for the report.