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Naming your CTA – Start with an A?

A common feature for most business cards collections in the hedge fund space is that the letter A in the Rolodex takes up a disproportional part of the space in the Rolodex. The common theory is that being first would result in investors seeing your name more often. Not only are Rolodexes sorted alphabetically, but most reports from brokers are also sorted in the same order.

So, is this only a popular delusion or do CTAs firms start with A more commonly than what would be expected? We dig through the NilssonHedge database to find out.

With all the caveats for lack of statistical significance we observe that, on average, the naming of CTAs does not deviate too much from what would be expected from English frequency tables. In fact, the letter A is actually slightly less common for CTAs than what would be expected. Your Rolodex distribution is simply distributed as you should expect it to be.

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