Diverse Hedge Fund Managers Are Continuing to Outperform

Hedge funds have had a banner year. According to Bloomberg’s Hedge Fund Database, the top quartile of funds returned 34% on average in the first eight months of 2021. Standout performers such as Crispin Odey’s European flagship are building hope within the industry that this could be the first year of net inflows since 2017.

So how do you pick a winner? One answer is to look at the diversity of your managers. Hedge funds owned or managed by women or minorities continue to outperform those of their White male peers on a one-, three-, and five-year basis.

Featured in the Dec./Jan. issue of Bloomberg Markets

Illustration: Armando Veve for Bloomberg Markets

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