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Hedge Funds Suffer From A 'Sameness' That's Hurting Performance

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Hedge Funds Suffer From A 'Sameness' That's Hurting Performance

Citing Doug Haynes, the president of Steve Cohen's investment firm, Point72 Asset Management, Business Insider reported the hedge fund industry has a well-documented performance problem, which is directly connected to a lack of diversity in the industry.

Hedge funds are suffering from groupthink, as they view the world the same way, the report claims. "It's not just [that the potential hire] has the same color and same gender. It's that they went to the same schools, studied the same thing, played the same sports," said Haynes at a Manhattan event on Tuesday hosted by 100 Women in Hedge Funds.

Related Link: 10 Richest Self-Made Women In America

According to Business Insider, only 7 percent of Point72's investment staffers are women, an extremely low figure, which, however, represents one of the leading figures in the industry, where women hold fewer than 2 percent of investment management positions.

Yet, some changes are taking place. For example, Seema Hingorani started Girls Who Invest, a nonprofit that trains female college students and helps them get Wall Street internships. Lucus Advisors, a Manhattan hedge fund started by Citadel and Third Point alums, recruits at historically black colleges.

According to Haynes's statement provided to Business Insider, Point72 is planning to recruit minorities, as a part of their training program for college students.

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