Investment Process
How hedge funds think.
FHFG studies hedge fund strategies through sector research, monthly investment meetings, and simulated portfolio decisions.
Two questions behind every idea.
Each idea connects a strategy to research, risk, and a portfolio decision.
Hedge Fund Strategy
How are we expressing the opportunity?
- Long/short equity
- Event-driven
- Merger arbitrage
- Relative value
- Macro-driven strategies
- Hedging & risk management
These are the frameworks FHFG studies, explores, and applies through research, pitches, and a simulated portfolio. More strategies are added as the organization develops.
Investment Process
How does an idea move through FHFG?
Idea / Opportunity
Analysts source ideas inside their assigned sectors: mispricings, catalysts, announced deals, macro shifts, or expectations that look disconnected from fundamentals.
Research + Valuation
Fundamentals, filings, and comparable analysis. The variant view: what the market believes, and why it may be wrong.
Strategy + Thesis
Long, short, pair, event, or macro view. The Analyst chooses the strategy that fits the opportunity and states the catalyst and what would prove it wrong.
Risk + Implementation
Entry and exit considerations, position sizing, order type when relevant, and how the downside could be hedged or offset.
Analyst Pitch
A concise pitch at the monthly meeting: thesis, valuation, catalyst, risk, implementation, and the invalidation point.
Investment Committee Challenge
The committee questions assumptions, valuation, catalysts, and downside. The Analyst defends the idea rather than finishing a presentation and sitting down.
Portfolio Decision
Inclusion is decided at the portfolio level: long and short exposure, concentration, correlation, and how the idea interacts with current positions.
Monitor
Catalysts, risk, and thesis drift are tracked between meetings. Positions are adjusted or exited on evidence.
Review
Closed positions are reviewed: what was right, what was luck, and what should change in how the strategy was applied.
Research between meetings.
FHFG runs on a monthly cycle. Analysts are assigned sectors and spend the month building long and short ideas to bring to the meeting.
- Sector research and valuation
- Long and short ideas with a variant view
- Catalysts, risks, and thesis invalidation
- Entry, exit, and position implementation
- Hedging and portfolio implications
Pitches, discussion, and decisions.
Analysts present their ideas. The Investment Committee tests the thesis and considers portfolio implications.
Market + hedge fund developments
The meeting opens with what moved: market events, macro developments, hedge fund news, major transactions, and anything relevant to current positions or strategies.
Analyst pitches
Analysts present the ideas they developed over the month in roughly five minutes: long or short thesis, valuation, catalyst, variant view, risk, implementation, hedging, and what would prove them wrong.
Investment Committee challenge
The committee questions assumptions, challenges valuation and catalysts, presents counterarguments, examines the downside, and tests risk management. The Analyst defends the thesis.
Portfolio discussion
Attention shifts to the simulated portfolio as a whole: which ideas earn inclusion, long and short exposure, concentration, sector exposure, correlation, hedging, and potential exits.
This is where individual research becomes portfolio thinking. All portfolio activity is simulated and educational. FHFG does not manage university or outside capital.
Get Involved
Get involved with FHFG.
Fairfield students of all majors and experience levels may express interest or apply as an Analyst.