Although women manage only a small slice of the hedge fund pie, they are enjoying increasing success in both performance and promotions, according to a new survey conducted by PricewaterhouseCoopers.
Between 2000 and 2009, women-owned firms delivered an average 9.06% annual returns, compared to a 5.82% average for all funds, according to data from Hedge Fund Research and reported in an article in The Guardian. Another study, by the U.S.-based National Council for Research on Women, shows that women are more likely to take a “holistic and risk-intelligent” approach to investing than men. And in the recent, turbulent years for markets, such a risk-averse approach can pay off.
Hedge funds may offer a more level playing field for women, as well. Compared with other financial institutions, hedge funds tend to have flatter organizational structures, with few layers and more opportunity to have a visible impact on the success of the firm. There are also more opportunities for flexible working hours, which enable women to better balance their work-family life without having to leave their jobs.
Nevertheless, women still manage just 3 percent of a $1.5 trillion global hedge fund industry. Which leaves plenty of room for women to play a greater role.
The Financial Times recently offered a quick snapshot of the health of the hedge fund job market as we move into 2010, and how soon we might expect a recovery.
2009 was a year of deep freeze, as many hedge funds simply tried to recover from the huge investor redemptions and free-falling market of 2008. That left practically no money for additional hiring. Firms instead tried to hang onto the staff they had.
2008 to 2009 was also a period when many big banks scaled back their proprietary trading desks. This dumped hundreds of experienced traders onto the street, flooding the market with trading talent. Thus, the chances of finding a position at a hedge fund during this period, without a stellar track record, were even more difficult.
Moving ahead, in the short term, industry insiders believe the surplus of trading talent will continue. Long term, however, job propsects looks brighter. One reason is that many of the larger hedge funds are beginning to nurture talent with in-house programs.
Some large hedge funds, such as SAC, have begun programs for candidates right out of university. Another firm, DE Shaw, one of the largest hedge funds in the world, prides itself on its recruitment capabilities. It hires “gifted mathematicians and computer scientists as well as extraordinary generalists” according to the firm’s website, and also notes that many of its managing directors hold degrees in fields as disparate as English, psychology, and Russian studies.
As the economy thaws and hedge funds recover, the larger funds will likely increase their commitment to graduate recruitment. However, only the highest quality candidates will have a chance at landing one of the few coveted positions.
A “Gone With The Wind” moment triggered a remarkable life turnaround for best-selling author, Marianna Olszwski. Like Scarlett O’Hara, she reached rock bottom and vowed “never to be this broke again” when her car broke down in the middle of the George Washington Bridge, and no one would help her.
Olzwski’s book, Live It, Love It, Earn It” and reviewed on NY1.com recently, is meaningful because she went on to achieve an MBA in international finance and to create a multimillion-dollar hedge fund marketing company. Her book is aimed at women, but offers advice that could help anyone searching for a hedge fund job these days.
Among her tips: don’t limit your networking to just job fairs and career-related events. Get out there and network at charity events, religious organizations, at your previous employers, just about everywhere.
Be attuned to your instincts and talents, as well, she says. If you have a nagging dream about changing careers or starting your own business, it’s there for a reason. Follow your instincts and you may end up doing something extraordinary.
