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Feminine Alpha : New PE and Hedge Fund Study on Performance and Prospects

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January 30, 2014

Although there are not a lot of them and the data is skimpy, apparently women-owned or managed funds are performing ahead of the industry benchmark, according to a report released this week advisory and services firm Rothstein Kass.

 

The study, entitled  “Women in Alternative Investments: A Marathon, Not a Sprint”, says that since June 2007, its specialized WAI Index (see graphic), which tracks performance of female led funds, returned 6 percent, while the S&P 500 gained 4.2 percent and the HFRX Global Hedge Fund Index dropped -1.1 percent during the same period.

 

The report said that performance comparisons are “more difficult” in the private equity area but a small sample of women-owned or managed private equity funds reported net returns of 14.8 percent in 2012, topping the Cambridge Associates LLC private equity fund index number of 13.8 percent.

 

“Our research shows women-owned and managed funds continue to demonstrate strong performance during what has been a difficult period for many alternative investment funds,” said ,” said Meredith Jones, director at Rothstein Kass and head of the Rothstein Kass Institute, in a statement. (Image Source: Rothstein Kass Institute)

 

Other findings

• There is broad optimism about the opportunities available for alternative investment firms in 2014

 

• Respondents are targeting above-average returns in 2014, as more than 50 percent of those polled hope to generate returns of 10 percent or more next year.

 

• Women more commonly occupy operational, financial or compliance roles within the alternative investment industry.  In fact, the survey revealed that females hold the highest percentage of C-level jobs within the financial suite, at 39.7 percent.

 

• Increased competition for deals was cited as the primary concern of private equity and venture capital investors (31.4 percent), and roughly one-third of private equity funds agreed with this sentiment. Interestingly, venture capital funds were most concerned about exit opportunities (43.7 percent) and much less concerned about competition (3.1 percent).

 
• There is no consensus on what strategies within the alternative investment industry would perform best in 2014. While long/short strategies took first place overall at 30.1 percent, responses varied widely among the various demographic groups.

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