Hedge funds managed by women have substantially outperformed the industry average over the past three years and five years, while limiting losses during 2008, according to data provider Hedge Fund Research.

The HFRX Diversity Index, which tracks funds that are more than half owned by women or ethnic minorities, has returned 7.6% annualised over the past three years and 9.1% annualised over five years. In contrast, the HFRX Global Hedge Fund Index has lost 2.04% a year annualised over three years and gained just 0.46% annualised over five years.