The fairy wrasses in the genus Cirrhilabrus are popular in the marine ornamental industry due to their small size and vibrant colors. Fairy wrasses inhabit deep-water reefs, and therefore, new species are frequently discovered but are only rarely collected. The relatively limited supply of wild-caught fishes coupled with consistently high demand renders fairy wrasses ideal candidates for aquaculture, but there are numerous challenges posed by the complex reproductive biology and mating systems. For several years, the University of Hawaii at Hilo Pacific Aquaculture and Coastal Resources Center has been developing broodstock and larval rearing techniques for the endemic Hawaiian Flame Wrasse Cirrhilabrus jordani as part of the Coral Reef Breeding Program. Establishing and maintaining broodstock groupings for consistent egg production has proven difficult due to the propensity for females to rapidly transition to males under captive conditions. Additionally, males vary in their reproductive prowess ranging from highly active to inactive. Further complicating broodstock management, our observations indicate that there are potentially sneaker males, or individuals with female coloration that function as males. Our results have led to the development of a process of forming a group of wild-caught fish with the highest potential for maintaining a broodstock group that produces eggs nightly over protracted periods. We present our observations of this species with the intent that these techniques may be useful for the establishment of broodstock groups of other valuable and difficult to obtain Cirrhilabrus species.