Over at Huffington Post, Brandon Turner described a number of traits that make women successful investors, such as the ability to look beyond the numbers, put their egos aside, and take less risk. See Six Traits that Make Women Amazing Investors.
But Helaine Olen in The Atlantic isn’t having any of it. She reviews the research and comes to the conclusion that women are in no way more risk averse, biologically speaking, than men. Women have just historically earned less money than men in comparable situations and they are, therefore, more careful how they invest it. See Why Don’t Women Take Risks with Their Money?
Just when it seemed the debate had been settled, the Rothstein Kass Institute released their December 2013 study, Women in Alternative Investments: A Marathon, Not a Sprint. The Rothstein Kass study of US hedge funds showed that the funds owned and managed by women actually performed better than the industry as a whole.
“There is meaningful alpha [risk-adjusted measure of performance] to be gained from investing in women-owned and -managed funds,” Meredith Jones, a director at Rothstein Kass who wrote the report, said in an interview. “There appear to be both behavioral and biological factors that impact women’s ability to manage money and make them consistent.” See Want Better Hedge Fund Returns? Try One Managed by a Woman.
Which brings us right back to where we started.
So, what do you think – are women better investors than men?