Wealth managers are eager to hire more female bankers because they are said to be more astute in making investment decisions. But are they?
Josh Lerner, a professor at Harvard University, has compared the performance of female-led fund managers with those of minority-led firms. He concluded that neither gender nor ethnic background affects the investment performance, reports the «Financial Times» (behind paywall).
The professor was hard pushed to come up with enough examples for his study. Only 51 hedge funds out of 1,125 were owned by either women or a person of an ethnic minority.
Disadvantages in Daily Life
In classic asset management, the numbers weren’t so firmly entrenched, but white men tend to be in a strong majority in that business too.
And while female staff are no guarantee for a superior performance, they still face substantial disadvantages in their daily work, according to the newspaper, which cited Kathryn McDonald from Axa Investment Managers. Female managers are finding it harder to attract investors for venture capital and private equity funds.
But It Still Makes Sense to Hire Women
While performance may not speak clearly in favor of hiring women, other factors do, Ian Heslop, a partner at Merian, told finews last year. With a broader background among staff, the variety of opinion is greater and therefore the quality of outcome.
