RESPONSIBILITY & RESULTS

At the core of our approach is a deep commitment to independent, fundamental research.  

 

Our disciplined bottom-up process balances the best elements of growth and value investing by identifying quality businesses with superior characteristics: financial strength, consistent solid growth, and integrity in leadership, that provide solutions through their products and services. Coupled with our traditional quantitative analysis, our research seeks out forward-thinking management, responsible governance policies and best-of-class environmental and social practices. We believe that these qualities are a competitive advantage for the businesses that embrace them.  

 

We complement our bottom-up approach with top-down research that takes into consideration the broad economic factors and trends that impact your investments. At Avalon we are attuned to the convergence of evolving demographic, technological and sustainability trends. Historically, these developments are early indicators of fundamental changes that lead to innovation and disruption. From the emerging global middle class, to the increasing impacts of climate change, to the complexities of new technology, we work to uncover opportunities and the businesses that are well positioned to thrive in the midst of change. 

 

Our sustainability research is rooted in improving your investment outcome.

Since Avalon’s founding over 20 years ago, our focused sustainability work has been core to our investment process. Out investment discipline extends beyond the typical quantities metrics to incorporate comprehensive sustainability data that is material to each company sector. We seek to identify businesses delivering compelling products and services in today’s complex economy, while aligning their operations and strategic direction with a sustainable future. 

INVESTMENT MANAGEMENT

Our comprehensive approach enables us to craft carefully considered solutions for each client — a product of our best thinking.

PORTFOLIO MANAGEMENT

Our comprehensive portfolio management begins with careful consideration of your financial goals, personal values, and tolerance for risk. With a deep understanding of your priorities, we help clarify investment objectives to determine an appropriate asset allocation framework.

 

We build customized portfolios the traditional way — with an emphasis on knowing what we own — investing in individual companies selected from our thoroughly researched universe of core holdings. Portfolios are diversified across asset classes, industries and global geographies to preserve and grow your wealth. The result is a durable portfolio designed to deliver over market cycles. This initial allocation is just the beginning. As active managers, our ongoing analysis and rebalancing are essential to long-term success.

EQUITIES

The cornerstone of our equity investment process is a dedication to research. We dig deeper, beyond the financial metrics and market headlines, to uncover the whole picture and develop an understanding of each company’s underlying business model. Our rigorous bottom-up research allows us to identify, value and invest in companies with sustainable competitive advantages and strong financial characteristics. 

 

A few basic principles define our disciplined approach to equity investing. One, a company’s investment returns are driven by its long-term earnings potential. Two, businesses that deliver consistent, predictable earnings and cash flow command higher valuations and provide better downside protection in periods of economic uncertainty. Three, diversification is a key component in building durable portfolios and managing risk over the long term. Lastly, good corporate citizenship is a competitive advantage. 

 

We employ analytical tools to develop and track a universe of investments based on our financial and qualitative criteria. We identify the most attractive companies by economic sector and industry that offer the best
risk-adjusted return. We apply this disciplined process across a range of domestic and international holdings.

INCOME

Income management at Avalon recognizes that each client has unique investment objectives and income requirements. We build out a customized allocation to bonds and income securities with a focus on stability and capital preservation.  Our in-depth research seeks the best opportunities in a given environment, balancing risks and not overreaching for yield. As is the case in our equity holdings, we believe diversification is also essential to our income positions.

 

Our process begins by examining and selecting from all bond asset classes, including government, municipal and corporates. In addition to these traditional holdings, we invest in income securities that offer the potential for growth
in distributions as well as appreciation, complementing the static income provided by bonds while keeping pace
with inflation. 

With a comprehensive view of all income asset classes we are better able to uncover the most compelling opportunities at any given time — providing innovative options that add value to our clients’ portfolios.

ALTERNATIVE INVESTMENTS

For many of our clients, we seek additional diversification beyond core stocks and bonds, utilizing hedge funds, private equity, real estate and venture capital. For clients who seek to further leverage their assets for positive social and environmental outcomes, we provide access to private impact investment opportunities. The inclusion of these alternative asset classes with lower correlations to public markets offers the potential for enhanced risk-adjusted returns.

 

Access to top-tier alternative managers can be difficult for many individual investors due to high minimum requirements, limited investor openings and complexity. Avalon leverages its resources to identify, research and select best-of-class external managers with demonstrated superior long- term records. Finally, Avalon provides due diligence to ensure managers adhere to their designated strategies and meet our expectations.

 
 
 
 

SANTA FE

125 Lincoln Avenue, Suite 301

Santa Fe, New Mexico 87501

T 505 983 1111

NEW YORK AREA

65 N Maple Street, Suite 300

Ridgewood, New Jersey 07450

T 201 251 9553

PORTLAND

1306 NW Hoyt Street, Suite 408

Portland, Oregon 97209

T 503 417 3481