While banking and is slowly warming to workplace diversity initiatives, hedge funds remain an unapologetic boy's club.
Leda Braga, head of Systematica Investments in Geneva, is one of the rare women running a hedge fund. Women in top positions at hedge funds are so rare that the network of «100 Women in Hedge Funds» has to change its name of «100 Women in Finance» recently – there simply aren't enough women in positions of decision-making in hedge funds.
The «Wall Street Journal» (behind paywall) took on the subject of workplace diversity in the hedge fund industry. Its conclusion? While men earn millions, women are often relegated to supporting jobs. Some hedge funds have begun hiring former beauty pageant contestants as sales representatives to lure money out of investors' pockets.
Rarely in Decision-Making
To be sure, there are no scarcity of female hedge funds employees, the «Wall Street Journal» found in an analysis of industry data. But, women are rarely if ever allowed into the exclusive domain of actually managing assets – where big salaries, bonuses, and of course prestige reside.
Only two women rank as investment executives in the 50 largest U.S.-based hedge funds. But half of marketing and investor relations departments are run by women, the analysis found. The salary divide is even more dramatic: while a hedge fund analyst earns roughly $700,000 annually, the average salary for senior investor relations staff is less than two-thirds this (or $450,000).
«I’m Surrounded by Gorgeous Babes»
The advantage of these middle- and back-office jobs is that the hours are somewhat more flexible than at the coalface. The problem is that many women are kept from the top investment jobs – hedge funds remain unapologetically a boy's club.
The paper quotes Marjorie Kaufman, a former managing director at New York-based Guggenheim – as head of marketing and investor relations: «The everyday reality of being at a hedge fund is to lock yourself in the fraternity basement where everyone around is acting like a frat bro.» The view, according to Kaufman, is: «I’m going to have this gorgeous babe in the office, because what does that say about me? I’m surrounded by gorgeous babes.»
Free Makeup, Hairstyling
The hedge fund industry lives this cliche particularly stubbornly: women receive free hairstyling, makeup, and manicures at a major Las Vegas-based annual hedge fund conference. The organizers helpfully suggest that meetings be conducted at private pool cabanas.
Verition Fund Management, a spin-off of Amaranth Advisors, was having trouble raising new funds. Help came in the form of Larissa Posner (pictured), a 26-year-old former beauty pageant contestant who had been featured as in «Maxim» as «the sexiest swimsuit model in the world.»
Posner Posing in a Red Bikini
Her job was to chat up potential clients for Verition at industry events. The consultant apparently wasn't shy about sharing pictures of her former life, including one in which she posed alongside a Corvette in a red bikini. Other hedge funds have hired former cheerleaders for marketing roles.
One female economist who was hired for an investment job was approached a few months in about moving to marketing. When she showed little interest in moving, she was offered a buyout to leave – ending her hedge fund career in less than one year.
