The next big investing opportunity isn’t buried in the markets – it’s hiding in plain sight. The data keep stacking up: fund managers from diverse backgrounds are delivering standout returns.
The latest report from the National Association of Investment Companies found that managers who are women or from racially diverse backgrounds outperformed private-equity benchmarks with a 16 percent internal rate of return, compared with 9 percent for the median. This kind of return is catching the eye of CalPERS, the California state pension plan with $500 Billion of assets to manage.
And yet the majority of institutional investors continue to ignore the smart money, instead pouring trillions through the same old-school, closed-door networks.
At the California Wellness Foundation, we’ve seen the strength of diverse managers in our own portfolio. Since 2016, we’ve invested through diverse fund managers who bring fresh insight, disciplined execution, and long-term vision. The results speak for themselves: steady, market-rate performance and broader impact for our mission to advance wellness for California’s communities.
Resetting Risk and Reward
