At Chevelon, we pay meaningful attention to portfolio construction. We align an individual’s risk tolerance and investment objective with attentive consideration for idiosyncratic risk exposure. Each individual security, and its corresponding risk attributes and weight, is analyzed in terms of its contribution to the overall dynamics of one’s portfolio. This allows us to further broaden diversification efforts for those clients who demonstrate a higher aversion to risk.
Areas of Expertise
The experience you need. The attention you deserve.
When you work with Chevelon, you are exposed to portfolio construction, fundamental research and analysis, and investment security selection that are often times reserved for exclusive, institutional asset management firms. That is where we cut our teeth, so to speak. And now, as fiduciaries serving individual investors, we harness our distinctive background and apply it to your wealth management needs.
Thoughtful Portfolio Construction
Independent Objective Research
We are fundamental analysts at heart. Our research process draws from multiple years of experience amassed at the institutional level. All investment security selection is vetted in-house, and we do not have any outsourced agreements or arrangements with third-party investment managers to manage your investment dollars, nor do we charge clients for that. We are not confined to selecting investments from a limited, “pre-approved list” of securities where there may be inherent conflicts of interest, such as investment banking relationships. As fiduciaries, we do not earn commissions for placing our clients in any investment security whatsoever.
Investment Policy Design
Many clients come to us not knowing if their investment return expectations are realistically consistent with their tolerance for risk, or if they should be more focused on total return, current income, or other factors. During the “Discovery & Alignment” phase of our process, we comprehensively explore what a suitable investment objective may look like given one’s appetite for risk, income and liquidity needs, behavioral tendencies, and return expectations. This investment policy is designed to identify one’s own personal and unique preferences.
Active Investment Management
“Never be held captive by your last thought” can be an accurate characterization of how we think of investment idea generation and risk management. An active investment management approach can allow us to act swiftly should the thesis on a particular investment notably change, or should the macroeconomic backdrop structurally shift, while striving for tax efficiency along the way. By employing our stock selection framework, we aim to identify better investments as ideas play out. We believe that this is a potential recipe for investment success.
Cost Consciousness
As an independent registered investment advisory firm, we are subject to fiduciary standards. These standards require an advisor to always act in the client’s best interest. For Chevelon, that includes constructing investment portfolios in a cost-efficient manner. We largely avoid fee laden mutual funds, aside from money market products offered by our custodian, Charles Schwab. With a focus on individual equities, supplemented by low-cost equity ETFs, we believe we can potentially lower the overall cost profile for our clients. As for fixed income, we combine individual debt issues with low-cost fixed income ETFs that, we believe, when taken together, can offer a more favorable cost picture than their mutual fund brethren.
Risk Management
Our founder has significant investment experience at the institutional money management level. Hence, we strive to invoke that same level of institutional experience and sophistication when addressing risk management. The result, we believe, is a personalized investment strategy that endeavors to honor the individual risk profiles and investment objectives of each one of our respective clients.
