What We Do
We believe that decision making is best approached in a structured and systematic fashion. Although not meant to be exhaustive, Exhibit I below, best illustrates our methodology. Decisions and potential courses of actions can be plotted onto a two-dimensional chart with the x-axis representing the complexity (structured or unstructured) and the y-axis representing the frequency (recurring or non-recurring) of a decision that needs to be made. The result is a four-quadrant diagram as shown below. A trading decision, such as should I go long or short S&P Minis with a short-term horizon fits in QI, where a high degree of skill is necessary to see repeated success. An investment decision, such as how do I best save for my children’s college education costs, may be best implemented by examining evidence of what has worked over long periods of time as shown in QII. In QIII, people may rely on personal experience or a gut feeling (commonly called "heuristics") when a decision is needed quickly. Taking a new trading position based on headline news events or other market-moving information requires good instincts. Lastly, QIV represents an issue or situation, such as the need to respond to a new or emerging market or regulatory regime, where seeking quality advice before acting maybe the best course of action. We aim to help you make the best decision and choices based on the right methodology for each situation. Understanding what is happening and why it is happening is necessary before thinking about what might come next and what it means to you and your financial security.
Exhibit I Structured and recurring decision theory is a well-established academic science with a countless number of scholarly papers and textbooks published over the years. I owe a debt of gratitude to many pioneers in the field that helped me formulate my thinking here . The Exhibit shown below is of my own design, although it’s likely that I picked up the basic idea from a long forgotten academic paper along the way.
Specific Areas of Specialization
Our business model is organized across four, sometimes overlapping segments:
- Registered Investment Advisory Services (State of New York)
- Strategic Advisory and Consulting
- Financial Market and Thematic Market Structre and Regulatory Research
- Financial Education
Registered Investment Advisory Services
Here we work with individual clients and their families, small and medium sized businesses and charitable institutions to analyze and plan for long-term financial success. Our belief is that real wealth is created and protected by deferring consumption in favor of savings, minimizing transaction costs and avoiding or deferring taxes. We also feel that most long term-investment decisions are fundamentally an exercise in judging the prospects of growth and inflation over the medium term to long-term. Asset allocation becomes much less fraught with anxiety once we have made these assessments. Of course, no single investment recommendation is suitable for everyone, and each investor’s personal preferences, constraints, and utility must be carefully considered before investing. A relationship with Chelsea Global Advisors, LLC will mean that together, we will make better financial decisions to ensure your financial success.
Currently, we offer and manage five different model portfolios for clients:
- Dynamic Balanced Portfolio
- Global Equity Portfolio
- Income-Oriented Portfolio
- Global Opportunities Portfolio
- Real Asset Portfolio
Our Client Brochure provides more detailed descriptions about our investment approach and model portfolios.
Our consultants have helped buy and sell-side firms deal with complex capital market-based issues. We offer full front to back knowledge and expertise of Trading and Sales, Research, Finance, Treasury, Risk Management, Operations, IT and Compliance functions. Our consultants speak many languages - meaning we understand the issues confronting client facing traders, asset collectors and asset managers, research analysts and salespeople and the infrastructure teams that support them. Recent engagements have included business portfolio rationalizations (core versus non-core), capital and operating model efficiency planning, liquidity planning, Dodd-Frank compliance, Volcker Rule analysis, Foreign Bank Organizations Rule 165, Leveraged Lending risk management, Bank Holding Company requirements and BASEL III RWA optimizations. A key observation here is that by serving and understanding institutional client's opportunities and constraints, we are in a much better position to understand the overall investment landscape for individual investors. In other words, we use our knowledge and experience of the market power of the larger institutions to help make better investment decisions for our investment advisory clients.
Chelsea Global Advisors, LLC reviews and previews development in the financial markets periodically. Our goal is to offer unique insight and ideas on how best to position your own capital in the markets. We do not make bold predictions and we rarely make single name stock recommendations. Rather, we try to identify which markets offer the best risk-adjusted returns based upon current risk premiums. Our approach is best utilized by those that wish to earn money over a cycle and not chase the latest investment fads. Basically, we favor an asset allocation approach over security selection. Usually, we will publish our thoughts and ideas in the middle and the end of each quarter or as necessary depending upon market conditions. Our analysis is macro focused, with a quantitative and probabilistic flavor. We examine interest rates, FX, credit spread, real asset and equity markets in the United States, the Euro Zone, and Japan. We also examine trends in emerging markets relative to developing markets.
We analyze and comment on the important capital market based structural themes that are likely to have a deep and lasting impact on individuals and on both buy and sell-side firms. For example, the highly unusual and protracted extraordinary monetary policies followed by the world's leading Central Banks has been a complete game changer for investors, bankers, borrowers, business owners, employees, endowments, asset collectors and asset managers, brokers, exchanges, and regulators. High-Frequency Trading (HFT) has also become another topical area of interest to many market participants. We explore such topics in the hope of better understanding the drivers of such developments so that we can better serve a client's investment and advisory needs. Essentially, we strive to discern the market's structural dynamics before trying to unravel its signals.
Training and Executive Search
Chelsea Global Advisors, LLC provides intermediate and advanced training courses in all areas of capital markets. Areas of expertise include:
- Financial Analysis
- Wealth Building Strategies
- Asset Allocation Strategies
- Economics for Traders and Investors
- Accounting and Finance for Traders and Investors
- Market Macro and Micro Infrastructure
- How Financial Regulation Impacts Assets Prices
- Financial and Operation Leverage Optimization
- Financial Markets in Europe and Asia