Our Investment Approach
Client investments are managed in customized separate portfolios comprised of
individual securities, rather than outsourced to third-party managers or funds.
Investment Philosophy Informed and disciplined decision making.
Research
rigorous fundamental research has been the cornerstone of our process since our firm’s founding
Collaborative
all investment decisions are made collaboratively amongst the principals of the firm
Focused
high conviction equity portfolios consisting of 25-30 stocks, thoughtfully diversified across industries
Active
bottom-up analysis to identify high quality securities amongst an evolving opportunity set
Durable growth
we seek businesses with competitive advantages that can drive compounded returns over a long-time horizon
Long-term orientation
we benefit from the ability to opportunistically invest with a long-term lens
Valuation
all investment decisions underpinned by assessment of security valuation
Sell discipline
continuous thesis validation allows us to sell securities when growth prospects or valuation no longer meet our criteria for investment
Research
rigorous fundamental research has been the cornerstone of our process since our firm’s founding
Collaborative
all investment decisions are made collaboratively amongst the principals of the firm
Focused
high conviction equity portfolios consisting of 25-30 stocks, thoughtfully diversified across industries
Active
bottom-up analysis to identify high quality securities amongst an evolving opportunity set
Durable growth
we seek businesses with competitive advantages that can drive compounded returns over a long-time horizon
Long-term orientation
we benefit from the ability to opportunistically invest with a long-term lens
Valuation
all investment decisions underpinned by assessment of security valuation
Sell discipline
continuous thesis validation allows us to sell securities when growth prospects or valuation no longer meet our criteria for investment
Equity Investment Process Investing in durable, quality franchises.
Avity’s time-tested process combines qualitative and quantitative analysis to identify high conviction investments. Our process seeks companies that meet stringent characteristics, maintain a competitive advantage, offer consistent growth potential and meet our valuation framework.
Optimal Business Qualities
- Vast and expanding addressable market
- Growing market share
- Recurring revenue streams
- High returns on investment and exceptional unit economics
- Proven management and fiscal stewardship
Strategic Competitive Advantages
- Robust barriers to market entry
- Significant customer switching costs
- Network effects that strengthen service or product value
- Economies of scale that reduce costs and enhance competitiveness
- Proprietary data or intellectual property
Rigorous Valuation Framework
- Relative valuation: Assess valuation multiples and growth prospects relative to peers and the market
- Fundamental valuation: Employ discounted cash flow analysis to forecast future financial performance
- Historical valuation: Review stock metrics relative to history
Comprehensive Risk Management Strategies
- Diversification to mitigate risk across different securities and sectors
- Continuous thesis validation to ensure investment rationale remains valid
- Portfolio rebalancing to maintain target risk profiles
- Sell discipline based on predefined criteria
Dynamic Growth Sectors in Focus
Cloud Computing
The backbone of modern internet services and data management
Precision Medicine
Individually tailored healthcare solutions
Electrification
The infrastructure powering the next generation
Digital Payments
Facilitating efficient and secure transactions
E-Commerce
The borderless global marketplace with unlimited shelves
Semiconductors
The foundation of all electronic innovation
Artificial Intelligence
The frontier of machine learning and smart automation
Cybersecurity
Protecting digital assets and information integrity
Who we serve
Learn more about our client community and understand how our personalized services cater to diverse financial needs, from individual families to institutions.