•We investigate how fund family affiliation impacts the liquidity management of U.S. equity funds.•We find that funds within large families use cash and sell their most liquid assets to meet redemption demand, while funds within small families maintain their cash balance and their most liquid assets.•We also find that, in large fund families, funds with high (low) total fees tend to consume (preserve) liquidity. In contrast, in small fund families, funds implement similar liquidity strategies regardless their fee charges.•Our results are consistent with the fund family favoritism strategy documented in the mutual fund literature. The article investigates how fund family affiliation impacts the liquidity management of U.S. equity funds. We find that funds within large families use cash and sell their most liquid assets to meet redemption demand. In contrast, funds within small families maintain their cash balance and their most liquid assets. We also find that, in large fund families, funds with high (low) total fees tend to consume (preserve) liquidity. In contrast, in small fund families, funds implement similar liquidity strategies regardless their fee charges. These results are consistent with the fund family favoritism strategy documented in the mutual fund literature.