GC IN-DEPTH | WOMEN IN HEDGE FUNDS Tipping the scales There are plenty of statistics highlighting the underrepresentation of women in senior roles at hedge funds, but now the industry is taking a more proactive than reactive approach to conquer inequality, writes Jonathan Watkins. his is where a statistic would usually be, highlighting the What became abundantly clear was imbalance between women and men in senior hedge that while they didn’t mind discussing Tfund positions. Right here would be another figure about the matter, just talking about the current how well that smaller percentage perform in their respective inequality and firing out statistics – such roles, and finally the question ‘so why aren’t more women as only 3% of hedge funds monitored by running hedge funds?’ would be presented. index provider HFR are run by women When reaching out to some of the most successful women – were not going to trigger the desired in the hedge fund business, I asked them if they were tired change. Those numbers certainly amplify of talking about the underrepresentation of women in hedge the need for change but they do not funds, gauging whether this was a topic covered perhaps directly ring it. too often. This is not to say that raising 16 globalcustodian.com Global Custodian | Hedge Fund Review 2015 GC IN-DEPTH | WOMEN IN HEDGE FUNDS awareness of the disparity between men and women in senior “Change has been coming more slowly than personally I roles should be scaled back, but the real story is around what would like to see. There are changes every day though, from is being done to provide opportunities and encourage women 100 Women in Hedge Funds, to seeing other women rise to the in the industry. top in other areas like operations.” This applies to everyone, from young women who may not have even started working yet, to those already in the early to One vision mid stages of their career who are looking to the future. That change Landry was referring to has certainly been aided From changing the mindsets for young girls snubbing by the organisation 100 Women in Hedge Funds (100WHF). traditionally ‘male’ subjects at school, to women in roles at While the shift in seeing more women in senior roles in hedge hedge funds having the ability to reach the very top. funds may have been slower than some would hope for, “It’s on the women who have already made it,” says Monica 100WHF stands as proof that there are in fact a lot of women Landry, head of trading and operations at Farallon Capital running funds around the world. Today, the group boasts more Management. “Even though you’ve got there and think ‘this than 13,000 members in 20 locations across three continents. is great’, you have to take on the additional responsibility to This consists of representatives from over 2,800 hedge funds, make sure the path is easier for the women behind you to 1,000 fund-of-funds and 500 institutional buyers. get there.” We’re going to keep going with these statistics as they are impressive and paint a positive picture of where the industry has progressed to at this point. In its 14-year existence, “You have to take on the additional 100WHF has held over 400 educational events, and raised over responsibility to make sure the path is easier $36 million for charity. The organisation has also secured royal backing, announcing for the women behind you to get there.” in November 2015 that The Countess of Wessex will serve as Global Ambassador of 100WHF’s Next Generation initiatives. This came shortly after The Duchess of Cambridge also Landry has risen through the ranks at Farallon over her 20- attended their London Gala in October. year career. What began when answering a newspaper advert “It’s not about ‘why aren’t there so many’ it is about what in 1994 to take on a temp role, laid the foundations for a we can do as an organisation to have impact on the next highly successful career at the San Francisco-based hedge fund. generation of women, and what can we do to increase the By the time Landry had made the move onto the trading number of women looking at the finance industry,” says desk, the team comprised of 13 employees, with just two Amanda Pullinger, chief executive officer of 100WHF. women. Her 16-strong team now consists of seven women. “It is quite clear that there are not enough women in the Four of which, Landry has helped move up from working on industry, and we can all talk about what the reasons are, but the front desk to their current roles. what we like to do is take action.” “I do think in general women are still underrepresented This approach has made 100WHF a lifetime partner for in the hedge fund world, but I don’t think it’s unique to the aspiring women. The organisation reaches out to schools and hedge fund industry, women are underrepresented in a lot of universities to help them acknowledge the opportunities that are areas in this world,” she explains. out there for them, while also providing positive role models in “Part of it is around education so everyone knows what the form of women already operating in the industry. opportunities are out there. Mentorship and having role models Members of 100WHF are encouraged to bring their daughters is so important. If we can get senior women out there to and nieces to education events, while the organisation also educate people we are going to get more traction and more arranges dinners as an open forum for young girls to ask young girls having an interest in the area and have a belief that women in the industry any questions they may have. they can do it.” “What that provides for these young women is opportunities From the women Landry has steered to their roles within to see women sitting on a panel, who work in investment roles her trading and operations team, to her young niece who and other positions in the industry on the stage, talking about she spent time discussing the benefits of studying topics topics related to their job,” adds Pullinger. like mathematics to, Farallon’s operations head has placed “That 10 year old girl isn’t going to come into the industry a significant amount of importance on educating and next year, but we have to start young, letting young women encouraging her juniors. know that this is a career for a woman and these are the She says it is on the leaders of the industry to influence exciting aspects of it and these are the things you get to think change, referring to both men and women in senior positions. about every day and act on.” Global Custodian | Hedge Fund Review 2015 globalcustodian.com 17 GC IN-DEPTH | WOMEN IN HEDGE FUNDS “If we can get senior women out there to educate people we are going to get more traction.” Monica Landry, head of trading and operations, Farallon Capital Management Tough conversations The group’s next generation initiative then provides a resource Rising through the ranks for women who have been in the industry for less than eight onica Landry stepped into the offices of Farallon years, giving them a forum in which to ask questions and seek MCapital Management in January 1994 after responding support. This part of the group focuses largely on retaining to an ad in a newspaper, and remains there to this day. those women in the sector. While her role has changed substantially from what she For the more senior members of the group, many of them described as initially being a ‘Jack-of-all-trades’, one thing then take on the role of educating and mentoring others. So she has held onto has been the same chair for her 20-year from the very early stages of their careers right to the end, tenure, she tells Global Custodian. That chair has come a 100WHF has become a resource and companion for women in long way since January 1994. hedge funds. Landry began as a temp at the hedge fund, when it had “I think this is going to be a very powerful tool in around 10 employees. “I started with everything, moving retaining women in the industry. People can be open about from accounts payable, accounts receivable, taught basic conversations such as ‘I’m thinking of having a family, how will accounting and general ledger, I started closing the books that work with my career, how did you do it? Will someone be and doing capital allocations,” she explains. “After a couple there to support me?’ of years of raising my hand for everything, they needed “Those conversations are hard to have in a work-based some assistance on the trading desk and asked me to switch environment but easier in a forum and environment that is directions and move onto the trading desk.” run by 100WHF. It is about being in a culture where you are a In 2001, Landry became a partner at the firm and co- minority and how you manage and work with that.” managed the trading desk until 2003 when she took over The topic of having a family is one on the minds of many the reign solely. Much like her own journey, Landry has women both entering the industry and already working in it. looked to promote and develop junior office employees As Pullinger describes, it is an example of one of the more from within the company and four of her 16-strong trading common conversations with their next generation iniative.