Chiron Capital Called "A Fund for All Seasons"

A recent article in Barron’s profiles the investment philosophy of Ryan Caldwell, lead manager of Chiron Capital Allocation fund, a world allocation fund (launched in 2015) that has the flexibility to “invest anywhere within a wide range of allocations.”

Since its inception, the article reports, the fund has delivered a 24.4% cumulative return, outperforming because many of its peers gravitate toward value stocks. “Growth,” says Caldwell, “is now squarely in leadership in the U.S. and Europe.”

The article underscores that Caldwell’s preference for growth stocks is fueled by what he calls a “quantamental” approach. He uses screening models that identify those factors driving global markets, to detect if and how conditions may be changing. For example, Caldwell’s strategy focuses on the performance differential between value and growth stocks as a key indicator. “A wide dispersion,” the article explains,” indicates that the opportunity in cheap stocks is greater than usual, so the fund tilts toward value.”

Even when favoring growth stocks, the article says, these models “limit the risks of frothy markets by reducing the allocation as valuations increase, while simultaneously increasing exposure to cheaper markets.”