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.