Our Strategy
Gradient
investment firms toronto

Investment Management Strategy

Our core investment strategy is an all-weather strategy designed to compound our client’s wealth over the long term. Avenue believes that owning high-quality businesses are the best investments to own. These businesses give us the highest probability of producing a consistent rate of return over time with the least amount of risk, regardless of the market environment. Our high-quality investment approach is agnostic to the highly concentrated stock market indices and is accompanied by a robust risk management process.

We achieve our results by owning select companies across diversified sectors in the economy that earn good returns on invested capital, which is the ultimate source of consistent profits. These profits that our investments generate are either reinvested within their business, driving future profits, or they are distributed to us shareholders as income. We aim to purchase our investments by paying what we determine to be a sensible price for each business. Our investment approach also includes a tail hedging strategy that offers enhanced downside protection. This allows clients to remain invested comfortably throughout an entire market cycle.

Our investment strategy has 3 phases:

01

Screen for high-quality businesses.

02

Assess valuation and purchase at a sensible price.

03

Rigorous risk management.

What is high-quality investing?

The industry views investing in two main categories: growth investing and value investing. However, Avenue believes that neither of these should be the focus. Instead, we believe quality investing is the sweet spot that blends the best of the two, leaving the worst behind.

financial planning
financial planners toronto
investment firms toronto
financial planning