Investment Process

The core of Field Street’s investment process is built on bottom-up trade analysis conducted across the firm’s areas of expertise. This is combined with top-down portfolio analysis to ensure sufficient diversification across each of the firm’s products.

Trade Selection:

    • Identification; 
      proprietary quantitative tools are utilized by the firm’s experienced trading team to monitor various markets and investment strategies in search of trading opportunities
    • Quantitative Analysis; 
      trades are analyzed quantitatively, including ex-ante return and volatility, maximum loss, performance in different trading environments, and correlation to the existing portfolio
    • Dynamic Factors; 
      investigate the factors that have recently effected a trade, such as investment flows, current holders, supply / demand dynamics, potential catalysts, and fundamental outlook
    • Execution;
      this decision includes target size, entry level, profit target, stop out, and hedging strategy

Portfolio Construction / Monitoring:

    • Portfolio Analysis;
      top-down analysis is conducted to review overall exposures and monitor expected and realized correlation across sub-portfolios
    • Risk Analysis;
      stress testing and scenario analysis are employed to uncover and hedge, if desired, unexpected exposures
    • Portfolio Management;
      the firm’s traders and PMs manage each sub-portfolio and will monitor and hedge existing trades, source new opportunities, and investigate market dynamics. Risk management policies outline the firm’s response to performance drawdowns