Avalon's investment philosophy is rooted in traditional "Growth Stock Theory" with disciplines that employ primary industry and company research as well as financial modeling. Avalon aims to identify dynamic managements and businesses with superior brand value and marketing prowess that are operating within industries underpinned by secular trends (fertile fields) for future growth. Our time horizon for investments are long, mirroring those of the most renowned companies who are committed to balancing current cash flow generation with capital investment for sustainable future growth.
Avalon's portfolio of long holdings is comprised of best-of-breed industry leaders, distinguished by established brand value, unique or disruptive product innovation, and differentiated marketing and distribution capabilities. In contrast, short positions center on businesses facing market share loss, product commoditization, or showing signs of under-investment and deteriorating profit quality.
Across the five key sectors of focus (global consumer, technology, media, healthcare, business services industries), we construct a portfolio of core long stocks, tactically hedged with short stocks and options aimed to reduce market risk, cyclical industry and company-specific risk.
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