In the midst of the ‘woke culture’, I still get a lot of calls from clients asking whether or not they should consider the gender of a fund manager when choosing one.
I firmly believe gender doesn’t matter in terms of endgame. Sure, there are still more male fund managers but when it comes to performance, one is just as good as the other.
What is interesting, though, is the difference in strategy. Marketwatch ran a story on Goldman Sach’s new study on fund management.
Goldman Sachs analysts in a Monday research noted that the average female-managed fund has a position in the information technology sector that’s 89 basis points overweight the benchmark — and a position in financials that’s 88 basis points underweight.
Put it another way, financials are the biggest overweight position, by 102 basis points, for funds that have few or no female portfolio managers.
Marketwatch reported that Goldman looked at a universe of large-cap mutual funds to compile the data. Of the 528 funds they analyzed, only 15 have all-female fund manager teams, but 73 have at least one-third of their manager positions held by women.
Goldman found strikingly similar track records between the female-managed funds in their study and those run mostly by men.
On average, 39% of female-managed funds outperformed their benchmark annually since 2017, compared to 41% of male-managed funds. Volatility of returns and risk taken is almost equal.
Finally, over the past 12 months, investor outflows have totaled about 6% of assets under management of most active stock funds, regardless of the gender of the portfolio managers.
The industry to which female funds have the second highest allocation, with a 66-basis point overweight position, is pharmaceuticals.
Conversely, the “health care providers and services” industry, also within the broader health care sector, is the industry to which female-run funds have the least allocated.
The Goldman analysts also break out the stocks within the Russell 1000 to which female-run funds are most exposed, compared to other funds.