Sunday, February 17, 2008

female aggressiveness - less aggressive in 'making money by being overly aggressive'

http://www.micromotives.com/2007/10/getting-in-touch-with-your-feminine-side/

a very interesting case study considering a hedge fund is the absolute example of alpha male overconfidence. my takeaway from such a cognitive study is a bit different from the bloggers'. my short analysis on why i think the trading performance actually improved with the female harmones.

"hedge funds are dominated by the aggressive male types. in such an environment, there is a constant void that gets bigger when u climb high up the ladder (from a junior trader to the showman). this void is the lack of women in the business that they can interact with or sort of share a different perspective. its the same case with ppl who put their money in hedge funds and people who do business with them...so its an almost-male dominated environment. now, when a man acts less aggressive and a bit more compassionate with his clients (like the junior trader Tong) or investors, there is automatic trust that builds around him and his portfolio, resulting in better trading performance."

we can kind of extrapolate this theory in dealing with aggressive markets where conventional wisdom says, the more aggressive you are the better your outcomes. it could be that cutting down on the aggressiveness and showing a more feminine side (=compassion) would actually result in the audience appreciating your stuff. am not saying women are 'soft' when i used the word compassion...its more like less aggressive in making money by being overly aggressive!!

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