Gender disparities among financial entrepreneurs: The case of hedge funds

Hedge funds (HFs) operate as small and medium-sized enterprises and are managed by entrepreneurs. When it comes to gender, the HF industry is among the most unequal sectors. International associations tried to reduce this gap by creating entrepreneurial ecosystems tailored to women in finance. Such initiatives are ineffective if quality is not present. The market is quick to assess who will survive and who will not. If there is a gender gap, we must first assess whether it comes from differences in performance. Our results indicate that this is not the case, at least for equity HFs with global investment focus. Sociocultural factors are more likely the reason. Our findings should encourage women in finance to break sociocultural barriers and take on leadership responsibilities. Efforts should focus on encouraging women to join the finance industry at the earliest career stages. Efficient capital markets will then select the best managers, regardless of their gender.