The Chiron Investment Process

At Chiron, our investment process is an actively managed framework that allows us to quantify fundamental factors, systematize our approach, and apply judgment to asset allocation and security selection. We look to discern what action managements are taking and what reactions this elicits from investors. The asset allocation framework is structured to seek to anticipate the conditions that lead to market drawdowns, while also anticipating the conditions that lead to rising markets. The security selection framework is built on two fundamental behavior pillars: earnings quality, which is a measurement of cash flow, profitability, and growth; and dispute, defined as a measurement of investor reaction to management behavior.

At Chiron, we believe Earnings Quality is a universal concept that works in all domains. While keeping our eyes on earnings quality, we lean on characteristics that are advantageous to us depending on our Domain Indicator.

 

 

Market Indicator Key

  • Deep Value

    Deep Value

    An indicator of 1 in our Domain Framework

    In a Deep Value Domain, valuation is the primary driver in both equity and fixed income security selection. A typical asset allocation will be close to maximum risk asset allocation.

    The variables selected for use in the computations/results shown are for illustrative and educational purposes only and were selected in the sole opinion of Chiron Investment Management, LLC and may change without notice at any time.

     

  • Value

    Value

    An indicator of 2 in our Domain Framework

    A Value Domain emphasizes valuation along with capital deployment as factors in both equity and fixed income selection. A typical asset allocation will be near maximum risk assets allocation.

    The variables selected for use in the computations/results shown are for illustrative and educational purposes only and were selected in the sole opinion of Chiron Investment Management, LLC and may change without notice at any time.

     

  • Neutral

    Neutral

    An indicator of 3 in our Domain Framework

    A Neutral Domain indicates valuation, capital deployment and market reaction as factors in both equity and fixed income selection.  Typical asset allocation will be near neutral (60/40) risk allocation.

    The variables selected for use in the computations/results shown are for illustrative and educational purposes only and were selected in the sole opinion of Chiron Investment Management, LLC and may change without notice at any time.
  • Growth

    Growth

    An indicator of 4 in our Domain Framework

    A Growth Domain emphasizes market reaction and capital deployment as factors in both equity and fixed income selection.  Typical asset allocation will be neutral (60/40) in risk allocation.

    The variables selected for use in the computations/results shown are for illustrative and educational purposes only and were selected in the sole opinion of Chiron Investment Management, LLC and may change without notice at any time.
  • Full Growth

    Full Growth

    An indicator of 5 in our Domain Framework

    A Full Growth Domain emphasizes market reaction as the primary factor in both equities and fixed income selection.  Typically asset allocation will be near minimum risk assets with cash in risk allocation.

    The variables selected for use in the computations/results shown are for illustrative and educational purposes only and were selected in the sole opinion of Chiron Investment Management, LLC and may change without notice at any time.
Podcasts, analysis, and more

 

 

Podcasts, analysis, and more

Investment professionals only:

Register today for access to additional Chiron information and resources.  


Explore Further

Find additional information, including white papers, fact sheets, and more. 

Anchor Point

Creating a globally diverse, multi-asset portfolio is a significant challenge, specifically where to start when allocating capital. Advisors and clients often encounter this same challenge—where to start?—when constructing a global portfolio. At Chiron, we aim to understand our starting point using a proprietary framework that helps us determine the optimal conditions for taking and avoiding risk. We utilize two proprietary tools: the Chiron Domain Indicator and the Chiron Dispersion Indicator to help us identify in which investment environment we are allocating capital. These tools, or indicators, in combination help us to establish an anchor for portfolio construction.

Precision Insight

At Chiron, we do not try to predict the future. We are highly aware of the narrative fallacy and the non-linearity of forecast error and its effects on client portfolios. Our fundamental research process is designed to provide insight around change in management and investor behavior. Understanding the interplay of this behavior and how change can affect investment outcomes is the lens through which we view portfolio construction and risk adjusted returns. By combining our proprietary tools with fundamental judgment, we believe we can understand the conditions that lead to successful investment outcomes, allowing us to Aim True for our clients.