Stock-picking and responsible investing in Emerging Europe
We are active stock-pickers with focus on fundamental research. On the ground presence in Estonia and Poland, long-term experience in investing in Emerging Europe public equities (since 2002), frequent company visits and really getting to know companies are the corner stones of our alpha creation.
Founded in 2007, Avaron is an independent investment management firm fully owned by its three founding partners and senior research team. Our three investment managers supported by four analysts is one of the largest research and investment teams dedicated to Emerging Europe public equity investments.
We generate investment ideas through in-house proprietary research and do not rely on third party brokers. We are true Emerging Europe specialists – our watch list consists of nearly 170 Emerging Europe ex-Russia public companies, 70% of which are in the market cap segment of below 3 billion euros, a niche mostly overlooked by international emerging market investors.
Investors can invest with us via our flagship fund Avaron Emerging Europe Fund and managed accounts. Avaron is regulated by the Estonian Financial Supervisory Authority and a registered investment advisor at SEC in the United States.
Responsible investors at heart
We believe sustainable companies offer the best potential for delivering sustainable returns. ESG has been integrated into our investment process for more than a decade, since we joined UN PRI in 2011. Over the years we have put a lot of work into developing our ESG research and integration processes to ensure a rigorous framework that adds value in investment and risk management.
Avaron Emerging Europe Fund was granted LuxFLAG ESG Label. The Fund relies upon negative and norms-based screening accompanied by ESG ratings that are established by our own investment team using an internally developed rating system. Furthermore, Avaron ESG ratings are linked to the valuation of issuers ensuring full ESG integration to the investment decision-making process.
We believe it is strategically important to have ESG analysis as an integral part of the overall company fundamental research and carried out by our own team. Thus, we have opted not to use third-party ESG-related service providers but rely fully on our own tools and people. This ensures that we can swiftly react to changes in issuer ESG performance as would be the case with changes in traditional fundamental performance.