Activitist investors, women-led hedge funds and women launching their own VC funds. Listen to our podcast interview with Ann Badillo, investor in Portfolia (US)

  
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Welcome to our #99 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova


From The Purse


In this week’s newsletter, we focus on activist investors leading hedge funds in pushing women on boards, women-led hedge funds and women setting up VC funds to address the female market.

And don’t forget to listen to The Purse Podcast interview with Ann Badillo. We talk about Ann’s investing experience in Portfolia (US) which is a venture capital firm that is founded by women, for women.

And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana


Activist investors and women-led hedge funds

ESG investing is gaining prominence with investors


There is a reason why investors Elliot Management Corp and Ancora Advisors LLC led activist hedge funds in pushing for women to join corporate boards last year:

women in leadership drive outperformance.

Last week, Angela Atherton, Co-founder and Principal for Parallelle Finance shared the business case for gender lens investing.

A growing body of research demonstrates higher levels of women in leadership (and diversity in leadership) teams leads to: higher return on capital, better productivity, higher stock price performance and and better risk management.

Investors push for ESG

Elliott, which oversees $48bn, and Ancora, which oversees $9.4bn, have said they are proactively identifying women directors, as reported by Reuters.

Activist investors can have direct influence on companies by shaking up boards via a shareholder vote or negotiating directly to add or remove directors.

As environmental, social and governance (ESG) issues gain prominence, activist investors are working with hedge funds to apply pressure on companies.

Women-led hedge funds

Women represent (only) 10.9% of senior employees at hedge funds whilst total female representation in hedge funds is only 18.6% (2021 data), according to the Financial Times.

Last year UBS launched a portfolio that invests solely in hedge funds led by women. The data shows that (hedge) funds run by women are better are managing risk, (limiting losses) and generate higher returns.

UBS has built a database of more than 340 women who are sole or joint managers, or have significant influence over research in computer-driven funds.

As women-led hedge funds often struggle to attract as much capital as their male peers, UBS plans to support women in raising funds for their portfolios.

Women are launching funds

In many cases, it makes sense for women to launch their own fund.

Rather than ‘battle it out’ in a male-dominated firm which is slow to change, lacks diversity and struggles to recognise the female market opportunity, women set out on their own.

We are seeing this trend across the board including in venture capital and angel syndicates.

One example is a venture capital firm called Portfolia (US), which is founded by women for women. Their aim is to activate women’s wealth and has developed a global investing brand for powerful women.

Portfolia designs investment funds for women to invest in the innovative companies they want to see in the world through returns and impact.

And they ensure the investing process is engaging and educational for women within a supportive community.

What next?

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News in Brief


Financial news

Crypto: bitcoin, ethereum, DeFi & NFTs


The Purse Podcast


We cover the following in our conversation:

  • how Ann started investing

  • investing in Portfolia funds (US)

  • the investing process

  • why women should invest

  • funding female-led innovation

  • and more

Please enjoy! Listen on all podcast channels including iTunes and Spotify.


Coffee Break? Read This



We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

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The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial advisor.


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