Where education meets opportunity
The Caimanes Student Managed Equity Hedge Fund offers students a unique opportunity to enhance their financial analysis skills through a hands-on long/short investment strategy.
In this fund, students are actively involved in sourcing both long and short investment ideas, rigorously defending their assumptions with comprehensive fundamental analysis and employing various relative and intrinsic valuation methodologies. They are also trained in advanced portfolio risk management techniques, aimed at consistently outperforming average S&P 500 returns.
A portion of the earnings from the Caimanes Student-Managed Equity Hedge Fund will be used to support scholarships for first-generation UF students. This practical experience equips students with a deep understanding of investment processes and strategies, preparing them for successful careers in the financial services.
Who are we?
The Caimanes Student Managed Equity Hedge Fund offers students a unique opportunity to enhance their financial analysis skills through a hands-on long/short investment strategy. In this fund, students are actively involved in sourcing both long and short investment ideas, rigorously defending their assumptions with comprehensive fundamental analysis and employing various relative and intrinsic valuation methodologies. They are also trained in advanced portfolio risk management techniques, aimed at consistently outperforming average S&P 500 returns. A portion of the earnings from the Caimanes Student-Managed Equity Hedge Fund will be used to support scholarships for first-generation UF students. This practical experience equips students with a deep understanding of investment processes and strategies, preparing them for successful careers in the financial services.
Our process
Each investment pitch requires extensive due diligence. Investment teams analyze both primary and secondary information to gain a comprehensive understanding of the company and its industry. In addition, they construct detailed financial models to identify the key drivers of the business, complementing this analysis with various valuation techniques to determine the company’s value.
Each position in our portfolio is continuously monitored by staying up to date with company filings, earnings calls and industry news, alongside regular updates to our financial models. We consistently evaluate whether our investment thesis remains intact. If the thesis is proven incorrect or fails to materialize, we will exit that position in the portfolio.
Contact us with any questions about the fund.
Our approach
Investment strategy: Caimanes will follow a long/short, bottom-up investment strategy, where students will pitch companies based on fundamental analysis and both intrinsic and relative valuation methods. This approach aims to generate returns from both rising and falling markets, while also reducing overall market risk through diversification.
Approach: We are investors who believe that the best decisions are driven by bottom-up, fundamental analysis. Our investment approach centers on analyzing individual stocks and the underlying fundamentals of their businesses.
Defense: All investment pitches are submitted for evaluation by the Investment Committee. During weekly meetings, these ideas are rigorously stress-tested by all participating partners. To proceed with a trade, it must receive a majority vote from the Investment Committee.
Portfolio construction and investment break down
Investable capital: The fund will typically run Net Long (~60% Long & ~40% short). This allows the fund to benefit from rising markets, maximizing potential gains from the overall upward trend in asset prices.
- Investments: U.S. Public Equities and Derivatives
- Position sizes: ~1% to ~2% of total Assets Under Management (AUM)
Due diligence: The Caimanes Executive Board and Chief Investment Officer will collaborate closely with the sector groups to determine position sizing, taking into account current exposure and diversification strategies.
The investment horizon will depend on the thesis timeline, its progression, and industry trends. Investments will be continuously monitored to assess whether the thesis remains valid.
We will manage risk by diversifying our portfolio, taking long positions in companies we believe have strong potential, and shorting those we consider less favorable. To further mitigate risk on our short positions, we will utilize call options.