Ultimate Position Sizing Guide Part 3

Structured sizing unlocks more than just efficient capital allocation. It strengthens research quality, promotes accountability, and drives better decision-making. In Part 3 of our white paper series, we move from concept to implementation, introducing Fundamental Optimization, a proven approach to position sizing used by leading hedge funds and asset managers.

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Built on the foundation of rigorous research, behavioral insight, and 20+ years of empirical data, Fundamental Optimization provides a repeatable framework that helps firms turn high-conviction ideas into consistent performance. ‍

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What You’ll Learn in Part 3

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What is Fundamental Optimization

Discover how this flexible framework blends qualitative insight and quantitative discipline, aligning expected returns with position size while accounting for risk, volatility, and liquidity.

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Best Practices for Implementation

Learn the seven key practices used by top-performing managers to bring structure to sizing decisions and improve process consistency across the investment team.

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How to Drive Accountability and Alignment

See how attaching forecasts to individuals and building consensus across roles creates ownership, clarity, and continuous improvement.

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Checklist Thinking and Process Discipline

Explore how integrating subjective factors like ESG, catalysts, and management quality makes the sizing process more robust and how regular updates keep it sharp.

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Feedback Loops That Refine Over Time

Understand how structured data capture and post-trade analysis turn every decision into an opportunity to optimize.

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