This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Is there a good explanation for higher returns in women-run funds?

James Dennin, Kapitall: Women-run funds outperformed last year. Is there a good explanation for this or are women just better?​

This morning the President of Women’s Institute for a Secure Retirement, Cindy Hounsell, went on air with National Public Radio to try and explain why more women aren't investing — even though a lot of research has emerged this year which suggests they might be better at it. 

Read more from Kapitall: Hedge funds like these 7 Chinese tech stocks

The article has prompted many responses, including this one from Quartz, which seems to accept all of the study's findings pretty gleefully, saying "the difference is probably due to testosterone levels."

Call me crazy, but I find the idea that there's a chemical which you can take (or not take) that will make you better at making money, a bit hard to swallow. Even if testosterone has been linked to risk appetite. 

And yet and yet the noticeably higher returns are hard to ignore. Women-run funds, though there are far fewer of them, consistently earn higher returns. 

One more plausible explanation, might be that male-dominated environment of Wall Street makes it harder for women to succeed. The ones that do, then, are by consequence much better than the pack.

Either way, whether the result of biology or social conditioning: for now the evidence seems clear that there are tangible economic benefits for having more women in the room, and possibly to having one in charge of it.

Read more about women CEOs.

There are only about 80 women-run funds world-wide, but these earned an average 6% — almost 6 times the average for funds. We decided to build a list of stocks using the holdings for one of the largest woman-run funds, Litespeed Management, captained by Jaime Zimmerman. 

Zimmerman's fund has performed incredibly well since its founding in 2000, earning a 118% between 2000-2005, a time when the S&P contracted. Her fund is up 1.18% so far this quarter. We built a list of the fund's top 6 holdings by weight. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs