UBS launches portfolio to invest in female-led hedge funds
UBS has launched a portfolio that specifically invests in hedge funds led by women in an effort to increase diversity and uncover hidden talent in industries traditionally dominated by men.
People familiar with the matter said the Swiss bank’s asset management department launched the Carmen portfolio in recent weeks after experimentation. Its goal is to select about 10 to 15 funds worldwide, in which women have the sole or common power to decide on asset investment.
This launch comes as investor interest in women and minority funds is growing, and American pension plans and other large distribution agencies are increasingly looking to invest in accordance with environmental, social and governance standards.
Chief Investment Officer of the late Yale Endowment Fund David Swenson Last year, I wrote to an external investment manager, stating that it was looking for “the degree of diversification of investment management companies to reflect the diversity of the world in which we live”.
According to data from the data group Preqin, the proportion of women in hedge funds is 18.6%, ranking second among the seven alternative asset classes, and has declined slightly in the past year. Women accounted for 10.9% of senior hedge fund employees, a slight increase from the previous year.
UBS declined to comment specifically on the launch of the Carmen portfolio, but Claire Tucker, senior investment officer at UBS’s hedge fund division, stated that women are “underrepresented, especially in investment, despite the lack of evidence. Skills or performance differences”.
Women-run hedge funds can Better limit losses Compared with those run by men when the market crashed last spring, they also profited from the subsequent market rebound.
However, this year they lag behind the broader industry, which has profited from the strong rise in the stock market and other risky assets. The HFR Women Access index rose 6.5% in the first half of the year, while the HFRI 500 fund-weighted composite index rose 9.2%.
According to data sent to investors, Leda Braga’s Systematica performed well, with its $4.4 billion alternative market fund up about 14%. Lan Wang Simond’s Mandarin Offshore fund rose 3.2%.
“Overall, this is a particularly strong environment for hedge funds. [the first half of the year] Russell Barlow, global head of alternative investment strategy at Aberdeen Standard Investments, said that it is reported to be the strongest in history, so it is not enough for funds that have historically been more robust in the downturn in female-run funds to lag behind. It’s strange.
UBS was launched at Aberdeen Standard Investments last year’s announcement that it would Capital Fund Track the performance of a female-run hedge fund index constructed by the data group HFR.
UBS’s investment portfolio will be actively managed, using quantitative and other analysis to select funds for investment. UBS has established a database of more than 340 women who are sole or co-managers, or in the case of computer-driven funds, have a significant impact on the research behind the fund algorithm.
UBS’s Tucker said: “It is difficult for women-led funds to attract the same amount of funds as male-led funds, but noted that “customers’ interest in diversification has increased”.
UBS said that there are often fewer female portfolio managers for hedge fund strategies such as macro and fixed income relative value.
Tucker said the company has been “raising more difficult questions.” [of hedge funds]For example:’Why are there no women in the investment team? ‘” It also plans to provide initial funding to help women who run a part of hedge funds but are not major fund managers launch their own investment portfolios.