Chingle uses a top down approach that is guided by macroeconomic factors and influenced by valuation methods.
Starting at the Top
Defining the economy is the foundation of our approach and an important process in our analysis. The microeconomic outlook Chingle defines comes from a deep understanding of how the economy influences different sectors. This process which results in success, is constantly the focus of our efforts, and adjustments to our holdings are modified to meet economic outlook.
Chingle invests in a wide variety of firms and positions. We apply the tools of valuation to address a range of practical scenarios and outcomes. Depending on the characteristics of the firm and the context of valuation, some valuation models are more appropriate than others. An in-depth understanding of the firm’s business activities provides a basis on which our method is able to more accurately forecast the value of the firm. Chingle predominately accesses fundamental valuation tools but combines quantitative methods to assist with the inputs for estimating future outcomes.
Putting it Together
Each strategy is unique and needs to take various levels of risk into considering regarding asset allocation. Chingle calculates the portfolios efficient frontier using the Modern Portfolio Technique (MPT) developed by Harry Markowitz. This allows us to receive the maximum return for a given level of risk – or a minimum risk for a given level of return.
Maintenance of the Portfolio
Each strategy Chingle manages is guided by an investment policy which outlines the risk parameters and objective. We constantly monitor each strategy making sure the objective is being met and risk levels are staying within their parameters. At the end of the year we perform an in-depth analysis of the strategies to determine any updates or changes to the strategy.