Is diversity at all a focus or topic of interest for tiger cubs and single managers? Even less women / people of color in these roles when compared to PE / VC...do LPs of HFs just not care at all about the makeup of the investment team? Or is it more that most SMs are smaller and can get away with not having diversity?
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If you were at a hedge fund, wouldn't the only thing that matters to you is that the most qualified people who can generate the most PnL get the job?...
The same mantra can apply to any job not just a HF. Doesn't mean people abide by it.
HFs will hire whoever the best is for the job whatever your background is. If you can make money, welcome aboard. Simple as that.
Some of the SMs are leaning into growth investing and raising larger funds to execute on this strategy, wouldn't there be LP overlap with those that invest in growth funds of VCs? Those LPs clearly care about diversity in VC funds as it's incredibly apparently in the hiring patterns these last few years...might be slippery slope but as SMs start to interface with these LPs...won't they have to start keeping different topics (e.g. diversity, ESG investing) top of mind that they previously might have ignored?
There is a really interesting episode of the MIB podcast with Elana Weinstein of IDW on HF recruitment from the side of HHs and diversity at hedge funds. If you're interested here's the link
"get away with not having diversity" bro nobody owes you anything because you look a certain way
LPs pay HFs to protect and make money with less risk than other means. They don’t pay for any other reason and don’t care about diversity. Tiger Cubs won’t take people for diversity reasons unless they’re LPs push for it which won’t happen
The street's lack of diversity is your opportunity if you can prove ways to use your different perspective to generate alpha
In my experience, we’ve been pressured by LPs hard to hire for more diversity (mostly endowments), in the categories you’d expect. That said, it’s been a challenge given the smaller sample size with the skill set required vs a college grad for IB. Think that at some point, this pressure may manifest into hiring people for the wrong reasons but this will likely come after the “core” team is built out
Hedge funds already run very lean so nobody gives a rats ass about diversity. If you are worth it, you will get the seat, if not it doesn't matter that you are black or are LGBT. I am not a UHNW so not a LP at a HF, but if I was one, I couldn't care less about Diversity of the hedge fund that is managing a significant portion of my net worth. "Dear Mr. X, We suffered a 20% decline this year, but we now have a new minority Analyst!"
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