Hedge Fund Awards 2014

Despite changing economic conditions Avenir’s investing philosophy doesn’t alter; it responds to the opportunity set provided by the market with a distinct three-pillar invest- ment approach: 1. All investments are underpinned by deep fundamental research at a company-specific level, to identify ex- treme mispricing opportunities where businesses can be bought for 50% or less of their underlying value 2. Prime consideration is given to the downside and dis- cipline is exercised to avoid investments that involve unquantifiable risks or unacceptably high risk of per- manent capital loss 3. The fund focuses on absolute, not relative, returns and does not engage in index hugging in any way. Mr Warner explains: “Our approach allows our best ideas to drive performance in a relatively concentrated manner. We invest with a longer time horizon than many other in- vestors which allows us to benefit from opportunities others miss due to their lack of patience or discipline.” 2014 International Hedge Fund Awards Avenir Value Fund Avenir invests in special situations and quality companies undergoing change. It is based in Sydney, which, given Australia’s international heritage and global outlook, allows the firm to be comfortable hunting the best investment bar- gains globally. “We conduct deep research and understand what is im- portant and knowable about the business and opportu- nity,” says Mr Warner. “If there are important questions for which we cannot find an adequate answer we simply move on to the next opportunity.” “We believe that an investment manager’s interests should be firmly aligned with their clients; an all too infrequent occur- rence in today’s institutionalized investment market. To en- sure alignment, we have the vast bulk of our own investable assets invested in the fund alongside our investors, whom we think of as partners, and we do not charge any fees unless the fund earns at least 6% per annum for our partners.” On winning the award Mr Warner said: “We were delighted when we were notified that we had won this prestigious award. It is an endorsement that great results can be achieved for our investors by following a sensible, thought- ful and low risk investment programme. We do not borrow to invest and, in fact, have held over 20% of the fund in cash over the past 12 months, a period in which the fund returned over 43% net to investors. “We have outperformed the broad market by a consider- able margin and awards such as this provide encourage- ment to investors that their interests are best served by seeking out those that can help them to compound value over time in a disciplined and safe manner rather than chasing short term investing fads that inevitably end in di- saster. We are very fortunate to have thoughtful investors who recognize the value of patience.” He added: “Time-arbitrage is one of the most powerful weapons in our armoury allowing us to find great opportu- nity in situations in which others are not willing to invest as the payoff may not occur in the next one or two quarters. We can only take advantage of these great opportunities because our investors allow us the latitude do so.” Adrian Warner is founder and chief investment officer at Avenir Capital (Avenir); an investment firm specializing in fundamental, value oriented and special situation investments in global equity markets, whose private equity background emphasizes bottom up research, long-term absolute returns and an intense focus on minimizing downside risk. Absolute Return Fund Manager of the Year – Australia Fact File Company: Avenir Capital Name: Adrian Warner, founder and CIO Email: [email protected] Web Address: www.avenircapital.com.au Address: Level 11, 2 Bulletin Place, Sydney, NSW, Australia, 2000 Telephone: +61 2 8031 7742 “We were delighted when we were notified that we had won this prestigious award. It is an endorsement that great results can be achieved for our investors by following a sensible, thoughtful and low risk investment programme.” Sydney Harbour bridge and skyline of Sydney in Australia at night 23 www.acquisition-intl.com