Cheval Strategy

We navigate risk.

Many investors may not understand the true nature of the risks they may hold in their portfolios, whether the portfolio is made up of mutual funds, stocks, bonds, or a combination of investment products. We believe not knowing the magnitude of risk undertaken in a portfolio is unacceptable. Our philosophy is built on the tenet that risks can be defined and quantified in precise terms. Rather than ignore the risks (and hope for the best) or try to avoid the inevitable, Cheval manages risk by mapping a course through a variety of market conditions. We seek to preserve our investment capital against catastrophic market declines by strategically managing risk levels in our portfolios as we pursue returns. Cheval is an actively managed portfolio developed with capital preservation and conservation tactics at its core. At the same time, we pursue opportunities to generate income in a variety of market conditions.

Our goal is to build wealth by buffering losses.

Ask any traditional investment advisor: how much am I going to lose in the next crash? They can't tell you. Too many advisors are unfamiliar and perhaps uncomfortable discussing true investment risk. On the other hand, risk mitigation is our core competency, and it is at the heart of every investment decision we make. That is because we believe that seeking to avoid large losses is the most important factor in the pursuit of our long-term investment goals. We level the playing field. Actively managed portfolios like Cheval require a high level of market intelligence and confidence. Many portfolio managers may not be comfortable with active investment management (or simply don't understand it), which means few investors may have access to this type of strategy. Until now. Jean Paul Lagarde's expertise and experience in high-level professional hedging strategies has given him the market intelligence to execute this specialized strategy with confidence. Cheval pairs Lagarde's sophisticated investment management with our company's core mission to provide holistic wealth planning and diligent, one-on-one service to help plan for your financial future.

Our fees are 100% transparent.

Quick question: Do you know exactly how much you're paying in fees in your portfolio? When we ask investors, many quote their advisory fee, which typically ranges from 1 to 1.5% (some pay more than 2%, according to a recent article by Bloomberg citing data from Cerulli Associates). Fees are often deftly hidden beneath layers of investment industry lingo and can be difficult to discern. The reality is, many investors don't know how much they're actually paying their advisor, or the expense ratios of their portfolio's individual holdings. According to Bloomberg, those expenses alone can add an average of .89% per year, with many funds - particularly so-called "alternative funds" - charging an average of 1.35%, according to the same study. Our fees are completely transparent. We cap our advisory fee at 1.78% annually, which includes all trading costs. We bill quarterly based on end-of-quarter account balance, and add the underlying cost of the exchange traded funds we use, which are typically less than .14%. We don't nickel and dime our clients with hidden fees.

Traditional money management strategies may not be suitable for some investors.

Traditional money management strategies seek to provide capital preservation, income, and appreciation by investing in three major areas: stocks, bonds, and cash. Investment strategies have changed radically. New tools, new technology, the advent of high-speed trading, and endless regulations have rendered a global market so complex and sophisticated, traditional money management strategies may no longer work to help conserve the assets of some investors. The tectonic shift in the financial services industry has also driven investors away from fee-driven, traditional money managers to robo-advisors who may offer lower fees, but may also offer limited market intelligence. Today, many investors find it hard to win, and some investors may be exposed to more risk.

No strategy assures success or protects against loss. To determine which investments or strategies may be appropriate for you, consult your financial advisor prior to investing

Stock investing includes risks, including fluctuating prices and loss of principal.

Investing in mutual funds and exchange traded funds (ETFs) involves risk, including possible loss of principal. And investment in ETFs involves additional risks such as not being diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.

Contact Us

Don't hesitate to get in touch with us.
We would love the opportunity to become your trusted advisor.