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Why You Shouldn’t Judge a Hedge Fund by Its Name

  • Such funds have lower returns and may shutter sooner: report
  • Paper finds gravitas reflects influence, seriousness, power

What’s in a name? For hedge fund investors, sometimes a warning sign.

Hedge funds often choose names with words that reflect authority, stability and power -- i.e. words with gravitas. Now a report from researchers at the University at Buffalo and Finland’s University of Oulu finds that investors should beware.