By Felice Maranz, November 26, 2019
– All-male teams run 409 out of 528 large-cap mutual funds
– Women get similar returns compared to their male peers
Portfolio management remains largely a band of brothers, new research by Goldman Sachs finds.
An analysis of 528 large-cap mutual funds showed 409, or 77%, had all-male portfolio management teams, strategists led by David Kostin wrote in a note on Nov. 25. Those funds accounted for 64% of domestic equity mutual fund assets.
Only 15 funds, or 3% had all-female teams, managing 1% of total assets. Just 73 funds, or 14%, with 196 billion in assets under management, have women in at least one-third of portfolio manager positions.
Despite their small numbers, women get similar returns as their male peers.
Since the start of 2017, 39% of female-managed funds have outperformed benchmarks annually compared with 41% for all other funds, while return of volatility and Sharpe ratios have “also been almost identical across all-male, all female, and mixed-gender teams,” Kostin and his co-authors wrote.
One difference between the two genders is the sectors they favor. Women put more money into information technology, utilities and consumer staples; men like financial services companies.
At the stock-level, women have higher relative exposure to Amazon.com, Apple, Nike, Microsoft and Merck, but lower exposure to Berkshire Hathaway, Comcast, UnitedHealth, JPMorgan Chase, and Booking Holdings.