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Laxman Pai, Opalesque Asia:

Taking a look at the performance against the S&P 500 and Russell 1000, a Women's Best Ideas index has outperformed the market over the past five years, said a study.

Like everyone else, the index dipped during the pandemic but found its way back since November. At the end of 2020, the fund boasts ~140% over 5 years, said a Novus report which highlights a list of funds led by women, and an index that extracts the best ideas from women-led funds.

"We assembled a peer group of 18 women-led hedge funds. We started with a more comprehensive list sourced from 100 Women in Finance and narrowed it down using the following criteria: 1. Founded or currently led by a woman, 2. Submitted Q4 2020 13F filling, 3.Traded on US exchanges, and 4. Meaningful AUM and position count (>$100M and >5 positions count).

"Our Women's Best Ideas Index barely lagged the wider hedge fund universe for a moment at the beginning of the pandemic, but outperformed the wider industry since September of 2020," the report said.

The report revealed that compared to the wider Hedge Fund Universe, this index is heavier weighted towards small & mid-cap names. The higher concentration towards this category is relatively recent, whilst the wider hedge fund Universe has maintained a steadier allocation towards mid-cap.

This focus on mid-cap has also proven a good bet for women-led funds, as seen by the alpha generation from the category over the last 5 years, it said.

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