At Chadsel LLC, we provide investment solutions that are responsive to our clients’ investment needs and diverse market circumstances and opportunities. Below is our approach:

• Style
  We believe that four investment “styles” — Value, Momentum, Carry and Defensive — have the potential to provide compelling sources of alternative returns, based on economic theory and decades of data across geographies and asset groups. When applied in long/short strategies, style-based investments seek to deliver positive long-term returns with low correlations to other investments.

• Empirical Research 
  We base our investment strategies on extensive empirical research. Our investment principles are grounded in economic theory and rigorously tested. We aggregate unique data sets on thousands of stocks around the world, as well as the interrelations of the firms with macroeconomic statistics and other information. We then apply rigorous econometric analysis to test investment ideas before we use them.

• Quantitative Process
  Our systematic approach to making investment decisions uses mathematical or statistical models to evaluate data on the fundamental value, risk, liquidity and momentum of thousands of individual securities, entire asset classes and countries. We also insist on having economic explanations for why our models did well in the past and may be expected to continue to do so over the long term.

• Portfolio Construction
  We take a “bottom up” approach to portfolio construction, producing diversified portfolios that do not depend on a few “best ideas.” Bottom-up means we start with assets and evaluate the attractiveness of each.

• Diversification
  We believe diversification helps investors reduce the overall risk of their portfolios without sacrificing expected return. Accordingly, in many of our strategies we seek to invest across different securities within each asset class, across many asset classes and across many countries. We also believe in diversifying investments by risk level as well as by capital.

• Risk Management 
  We take a quantitative and qualitative approach to risk management. Our independent risk management team continually monitors such variables as value-at-risk, drawdowns, liquidity, and counterparty exposures. Clients and counterparties receive data on our fund volatility, cash position, leverage and strategy volatility. We strive to maximize the transparency of our risks.

• Investment Horizon
  Investors should be compensated for risk, so they must take risks to achieve their goals. Having a long-term investment horizon is a potential advantage because it allows investors to bear more near-term risk than those with shorter horizons. In order to truly thrive over the long term, however, it is important to brace yourself for the occasional short-term drawdown.