Patient female fund managers trounced male counterparts during recession
If you are looking for safe, consistent returns, you may want to dump Joe for Jane. A new report found that female alternative investment managers appear to do a better job delivering more compelling long-term results than their male counterparts, at least during periods when the economy is struggling.
The report, compiled by New Jersey accounting firm Rothstein Kass, found that women-owned alternative investment funds – hedge funds, private equity and venture capital etc. – delivered a 3.6% compound annual return during the five years ending in Sept. 2012, according to U.S. News & World Report. The all-inclusive HFRX Global Hedge Fund Index, meanwhile, booked a 3% loss during the same period.
The difference in outcomes is heavily correlated with the manner in which most female fund managers operate. Unlike their male counterparts, female managers tend to have less turnover in their portfolios, choosing safer long-term buys over volatile pumping and dumping. As you’d imagine, this style of investing tends to do well during tumultuous times.
"Women take lower risks because they do more research and are more comfortable holding their securities longer," Rothstein director Meredith Jones told U.S. News & World Report. Men, it seems, have an itchy trigger finger. Funny that just 3% of alternative investment funds are managed by women.
Questions Asked By Consulting Firms (eFinancialCareers)
Like banks and other financial firms, consultancies will slip in behavioral questions, brain teasers and short analytical inquiries during interviews. Here’s is a list of the type of questions consulting firms ask entry-level and experienced candidates.
After weeks of speculation, J.P. Morgan has reached a $13 billion settlement with regulators, bringing an end to a number of pre-crisis investigations and lawsuits. Cue the patented “Jamie Dimon is still great” recording from J.P. Morgan’s board of directors.
Checking the Temperature of Headhunters (eFinancialCareers)
We asked four different financial services headhunters what their issues are now. Speaking off the record, this is what they told us.
Watchdog Gets Nabbed (NY Times)
SEC staffer Steven Gilchrist was arrested on Tuesday following an investigation into the personal financial holdings of agency employees. The 48-year-old compliance examiner lied to investigators about owning shares of six companies that staffers are barred from holding.
Salespeople Latest Target of FX Probe (WSJ)
As part of their investigation into the alleged manipulation of foreign-exchange markets, Barclays and other banks are looking into whether their salespeople committed any misdeeds. Barclays is one of several banks to have already suspended exchange traders for their involvement. Now, sales staffers have become a target.
Prudential Hires Goldman Vet (Bloomberg)
Prudential Financial has hired Goldman Sachs exec Robert Cignarella as its new co-head of global leveraged finance. Prudential is looking to make a bigger push with its asset management arm.
Working for a Wunderkind (Business Insider)
Chicago-based quant hedge fund SBB Research Group is on the lookout for engineers. The only thing is you’ll need to be comfortable working for a 24-year-old CEO. He looks 20, tops.
Buzz Around the Office
The latest must-own fashion item has arrived just in time for the holidays. It’s called the Twinsie. If you are looking to hate yourself and resent your partner, order now!
Quote of the Day: “Find a job that you like. You’ll be better at it and you’ll last longer in it. Having said that, in a tough economy, or because of family pressures, you may not always be able to take a risk with a job choice. And, no doubt, we’ve all settled at various times. But, don’t let necessity in a given moment become the excuse for a lifetime of inertia.” – Lloyd Blankfein
