Jung Hoon Lee

Jung Hoon Lee

Senior Lecturer in Finance

Research Interests/Areas of Expertise

Investments, Credit Risk, Mutual Funds and Financial Regulation

Subject Areas




Professor Lee's main research interests are broadly in mutual funds, hedge funds, credit rating agencies (CRAs), and financial regulation. His research includes topics such as funds of mutual funds, mutual fund manager contracting, the trading behavior of mutual funds, and its real effects. He has presented at annual meetings of the American Finance Association and the Society of Financial Studies Cavalcade as well as at some other prestigious conferences. His work includes two articles in the Journal of Finance and some other working papers.


Professor Hoon teaches Derivatives and Investments in the daytime MBA and MSF programs. Prior to coming to Owen, he was an Assistant Professor of Finance at Tulane University and then an Assistant Professor of Finance at the University of New South Wales (Sydney, Australia).

Research Interests

His research focuses on mutual funds. He has studied the investment behavior of affiliated funds of mutual funds (AFoMFs), which are mutual funds that can only invest in other funds in the family; these funds are offered by most large families. His work discovers that AFoMFs provide an insurance pool against temporary liquidity shocks to other funds in the family and that the cost of this insurance is borne by the investors in the AFoMFs. Thus, this paper uncovers some of the hidden complexities of fiduciary responsibility in mutual fund families. In another study he examines mutual fund managers’ performance-based contracts. The study theorizes that mutual fund managers with asymmetric compensation contracts and mid-year performance close to their announced benchmark increase their portfolio risk in the second part of the year. As predicted by the theory, performance deviation from the benchmark decreases risk-shifting only for managers with performance contracts. Deviation from the benchmark dominates the incentives from the flow-performance relation, suggesting that risk-shifting is motivated more by management contracts than by a tournament to capture inflows of investor cash flows.


Ph.D., Finance, Indiana University, Kelley School of Business, 2011

MS, Applied Statistics, University of Michigan, 2005

BS, Finance, Sungkyunkwan University, 2002