The Avanto Difference
Sustainable outperformance requires an investment process that is disciplined, difficult to replicate, and reliably delivers a portfolio of attractive risk/reward opportunities - this is what we have built at Avanto Partners
Long Positions
Avanto searches for high-quality, growing businesses that it believes often fly under the radar and are mispriced
Short Positions
Avanto’s short investments focus primarily on what it calls “doom loops”, or capital constrained businesses that Avanto believes are secularly challenged and undergoing misguided initiatives, often accelerating a downward cycle of value destruction
“Disappointing results lead to reaction without understanding, which leads to a new direction—a new leader, a new program—which leads to no momentum, which leads to disappointing results. It’s a steady, downward spiral. Those who have experienced a Doom Loop know how it drains the spirit right out of a company.”
Jim Collins, Good to Great
Fundamentals. Low- or no-growth businesses facing growing secular and/or competitive headwinds resulting in deteriorating financial performance
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Balance Sheet. Capital constraints limit time and options for company, reducing risk to Avanto
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Misguided Corporate Actions. Unskilled management teams pursue major initiatives likely to accelerate downward spiral. Market buy-in creates a ‘hope premium’ – Avanto’s source of opportunity