One of the many projects I have been working on for a while is the writing of a white paper that takes a comprehensive look at women as investment professionals, with a focus on women as traders, hedge fund managers, and portfolios managers. In collaboration with a good friend Carrie McCabe, a true goddess in the institutional hedge fund space, and the National Council for Research on Women ( http://www.ncrw.org/ ) we hope to uncover some of the reasons why women are so underrepresented in these important areas. As many of you know, I was a trader and have for almost twenty years been actively involved with promoting investment careers to women. I participated in countless recruiting events while at Goldman, and today still enjoy speaking at University gatherings on the topic.
– Women spend more time researching their investment choices than men do. This prevents them from chasing “hot” tips and trading on whims — behavior that tends to weaken men’s portfolios.
– Men trade 45% more often than women do, and although men are more confident investors, they tend to be overconfident. By trading more often — and without enough research — men reduce their net returns. But by trading less often, women get better returns and also save on transaction costs and capital gains taxes.
-A study by the University of California at Davis found that women’s portfolios gained 1.4% more than men’s portfolios did. What’s more, single women did even better than single men, with 2.3% greater gains.
– Women tend to look at more than just numbers when deciding whether to invest in a company. They invest in companies they feel good about ethically and personally. And companies with good products, good services, and ethics tend to have better long-term prospects — and face fewer lawsuits. “