The third annual “Women in Alternative Investments” report from Rothstein Kass Institute finds pent-up demand for women-owned hedge funds. “Lack of supply” of women-owned or –managed funds is the chief reason cited by investors in explaining why they have no investment mandates for such funds.
A desire to support diversity isn’t the most compelling reason to seek out women-owned funds: Over the past six and a half years, the Rothstein Kass Women in Alternative Investments Hedge Fund Index returned 6%, compared with a 4.2% gain by the S&P 500 over that period.
As a result, the report forecasts a slow but steady flow of investment capital to women’s hedge funds. “While perhaps not as speedy as some would like, diversity mandates, as well as demonstrated outperformance by women managers, are driving investors to increase allocations to women-run funds,” the report concludes.
Most investors (73.5%) surveyed say they expect their allocations to women-owned or managed funds will hold steady this year. But one in four (24.5%) expects such allocations to increase this year while 2% predict a significant increase in 2014.
You can read the complete “Women in Alternative Investments” report here. If you’re in the financial arena, share your thoughts about the report’s conclusions. Join the conversation.