Risky Business: Women-Run Hedge Funds Bring Home More Bacon

Cristen Conger

See the full video at Bloomberg.com.

Old school Wall Street thinking held that the financial industry is tailor-made for men since they're typically more open to taking risks than women. After all, you have to bet a lot to win a lot, right? As the market emerges from global collapse, however, many have wondered whether the economy would've fared better with more women in the Wall Street mix. Could a touch of measured caution and risk management, which is more inherent to women's financial acumen, have prevented some of the costly mistakes that sent stock markets spiraling?

Barring a time machine that could give us a conclusive answer, here's at least one bit of compelling evidence that it's time to get more women managing massive amounts of money. Even during the darkest days of the recession, female-managed hedge funds took softer hits than male-managed accounts. Businessweek reported, "in 2008, when financial markets were cratering, funds run by women were down 9.6%, compared with a 19% decline for men."

As reported on Bloomberg, women-run hedge funds have raked in more than those overseen by men. Although women comprise only 3% of hedge fund managers, their portfolios have profited 55% more than the guy's from 2000 to 2009. Considering that in 2010 alone, people invested $1.917 trillion in hedge funds, women's stronger returns amount to far more than a hill of beans.

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