Quantopian, a Boston-based trading platform based on crowdsourced algorithms, pitted the performance of Fortune 1000 companies that had women CEOs between 2002 and 2014 against the S&P 500’s performance during that same period. The comparison showed that the 80 women CEOs during those 12 years produced equity returns 226% better than the S&P 500. (Global nonprofit women’s issues researcher Catalyst compiled the list of women CEOs used in the simulation.)

Here’s how the simulation works: Rubin invests a hypothetical $100,000 in the companies that had women CEOs between Jan. 1, 2002 and Dec. 31, 2014 and another $100,000 in the S&P 500. Rubin buys a company’s stock when the woman becomes CEO, and holds it through the CEO’s tenure.

According to the algorithm, the women CEO fund would end up being worth $448,158, or a return of 348%, while the S&P 500 investment would have risen to $222,306, or a return of 122 %. The results are even on the conservative side for the performance of the women CEOs, since dividends weren’t reinvested automatically as they were with the S&P 500.

http://fortune.com/2015/03/03/women-led-companies-perform-three-times-better-than-the-sp-500/
Top