Stable “Quality” Investing.
Our core investment strategy is designed to compound your wealth over the long term. Avenue believes that predictable “quality” investments are the safest route. This gives us the highest probability of producing a consistent rate of return with the least amount of risk, regardless of the market environment.
We achieve this by owning high-quality companies across diversified sectors that are 1) purchased at a sensible price, 2) generate consistent income streams and 3) earn good returns on invested capital.
At Avenue, we champion independent thinking. The real goal of investing is beating inflation over time. We are not interested in mirroring the index or listening to short-term market noise when it comes to our decision-making. Instead, we focus on uncovering investment opportunities that are consistently profitable, while meeting our rigorous criteria and ensuring your money is safely invested.
We foster true independence through in-depth research. By knowing exactly what we own at all times, we can make the best decisions for our clients. We work to uncover high-quality businesses that are profitable and consistently generating high returns on capital. We look for companies with well-run management teams and a conservative level of debt that we can buy at a sensible price.
At Avenue, we believe that any successful investment starts with a fair purchase price and we don’t deviate from this. If we find a quality investment that isn’t trading at a fair price, we simply don’t buy it. Our disciplined approach is unconstrained by the benchmark, even if it means going through uncomfortable market cycles.
Avenue Margin of Safety.
When it comes to investing, it’s easy to compare returns but it’s very hard to show how much risk was taken to get those returns. More often than not, you never know how much risk you’re taking until it’s too late. At Avenue, our asset allocation decisions are governed by a long-term understanding of risk to produce stable, consistent returns for clients over time.
The Avenue Margin of Safety builds protection against uncertainty in the market at every level of the investment process. We achieve this through diversification and being opportunistic in order to drive consistent returns with less risk. In addition, each Equity Portfolio has exposure to the Avenue Tail Protection Strategy, which provides risk mitigation protection against low-probability but significant market declines.
We recognize that when it comes to investing, there is no one-size-fits-all approach. While our core investment mandate guides our decision making, we build every client a customized portfolio based on their unique investment objectives, tax considerations and financial circumstances.
Is this buy-and-hold investing?
We like to call it quality investing, by limiting the downside of investments and winning by not losing. A great investment is one we can hold for a long time. However, in the real world, situations change. On average, we hold an investment for about 5 years.
Does Avenue use derivatives?
Avenue only uses derivatives in the Avenue Tail Hedge Strategy to hedge overall market risk. The rest of our portfolios are made up of investments in stocks and bonds where we have a long-term view on their ability to compound.