Eponymous Hedge Funds

63 Pages Posted: 2 Aug 2021 Last revised: 10 May 2023

See all articles by Vikas Agarwal

Vikas Agarwal

Georgia State University - J. Mack Robinson College of Business; University of Cologne - Centre for Financial Research (CFR)

Yakup Eser Arısoy

NEOMA Business School

Tri Trinh

NEOMA Business School

Date Written: July 9, 2021

Abstract

We examine if eponymy in the hedge fund industry, i.e., naming a fund after the founder/manager, is associated with managers signaling their ability and/or ethical behavior. Our results are consistent with the latter, i.e., eponymous managers are neither skilled nor outperform their non-eponymous peers but exhibit lower operational and fraud risks. If eponymous funds commit regulatory violations and breach investors’ trust, they receive lower flows despite performing well. However, they receive higher flows if they do not violate. Our findings suggest that eponymy serves as a useful signal to investors who value a fund manager's ethical behavior besides performance.

Keywords: Eponymy, hedge funds, performance, signaling, reputation, trust, ethics, integrity.

JEL Classification: G23, G40, G41

Suggested Citation

Agarwal, Vikas and Arısoy, Yakup Eser and Trinh, Tri, Eponymous Hedge Funds (July 9, 2021). Available at SSRN: https://ssrn.com/abstract=3883705 or http://dx.doi.org/10.2139/ssrn.3883705

Vikas Agarwal

Georgia State University - J. Mack Robinson College of Business ( email )

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HOME PAGE: http://https://sites.google.com/view/vikasagarwal

University of Cologne - Centre for Financial Research (CFR) ( email )

Albertus-Magnus Platz
Cologne, 50923
Germany

Yakup Eser Arısoy (Contact Author)

NEOMA Business School ( email )

59 rue Pierre Taittinger
Reims, 51100
France

Tri Trinh

NEOMA Business School ( email )

51 rue Pierre Taittinger
Reims, 51100
France

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