Why is the Hedge Fund World Still so White and Male?

The diversity issue plaguing the financial world is nothing new and well-documented in popular culture. While many outsiders may have assumed that recent decades and years would have brought changes to the balance of women and non-white employees into the investment industry, recent data suggests that the problem has persisted, and in fact that there have been very few signs of a shift toward racial and gender parity in most workplaces.

According to research organization Morningstar, only one out of 10 managers of mutual funds in the U.S. is a woman. In this regard, the U.S. lags well behind many other countries, including Singapore, Portugal, and France, where the rates of women managers reach to 30%, 28%, and 21%, respectively. The problem is not just a local one, however Morningstar's report indicates that the global rate is only 20%, and that this percentage has not changed at all since 2008.
Hedge funds see similar statistics as well. Globally, female CEOs of hedge funds constitute only 15% of the total pool, and the large majority of hedge fund leaders tend to be white. Morningstar indicates only a small number of Latinos and African-Americans are in top leadership positions in hedge funds around the world.
Analysts both inside and outside of the industry have asked a number of questions about this disparity. It seems likely that there are a number of potential causes or contributing factors to these issues, including engrained biases, hiring practices that are inclined to play favorites, poorly established resource pools and networks for certain applicant groups, and more.
A report by Business Insider explores some of the possible implications of the racial and gender disparity in the finance world. The report reveals everything from minor annoyances, such as women being asked about their roles in the workplace, to more significant issues including poor treatment from supervisors, harassment, and more. Nonetheless, most of the minority or female workers interviewed for the report suggested that overall, their work experiences had generally been positive. In fact, because investing provides concrete and quantifiable records of employee performance, some felt that there were checks against biases that otherwise might have impacted their careers. At the same time, though, interviewees indicated that having a "thick skin" was important, that there were frequent instances of being ignored or discounted, and more. Responders told stories of clients requesting coffee from female money managers, of widespread institutional racism and prejudice, of harassment at a variety of levels. Will the industry move to address these issues? Or will it continue to be business as usual for the foreseeable future?
A Problem Both Inside and Outside of the U.S.
Hedge Funds, Too
What May Be the Cause?
And What are the Implications?