Avaron is an independent asset management company established in 2007 focusing on Emerging Europe listed equity (core strategy) and fixed income asset classes. We seek to add value to our clients via active and responsible investment management. Our aim is to be the leading partner for institutional investors in our focus region. Our products range from equity to high yield investing in both Emerging Europe ex-Russia and cum-Russia based on our proprietary research. We manage over €350 million of institutional and high-net-worth investors’ assets. We follow responsible investment practices and have signed the UN Principles for Responsible Investment (PRI). Avaron is supervised by the Estonian Financial Supervision Authority and is compliant with UCITS regulations. The company is a registered Investment Advisor with the US Securities and Exchange Commission (SEC).
Experienced local team
Avaron’s investment managers have been active in Central and Eastern European equity markets since 1997. Today Avaron has one of the largest teams dedicated to Emerging Europe investments comprising of 20 professionals based in Estonia and Poland. Using quantitative and qualitative screens we have narrowed the 6,000 companies listed in Eastern Europe down to 250 that form our internal investment universe and on which we conduct our proprietary analysis. Our team assesses companies’ business models, management quality, development plans, financial standing and outlook based on their public disclosure and continuous company meetings and management interviews. In recent years extensive effort has been put on in-house analysis of the sustainability aspects of each company. We believe investing successful in Emerging Europe relies on in depth understand of the local business environment and regional sector trends achieved by long term experience on these markets.
Pure stock-pickers, benchmark agnostic
We combine top down macroeconomic and sector analysis with bottom-up research. Markets in Emerging Europe are often inefficient and therefore offer lucrative opportunities for stock-pickers. Avaron is an all-cap investor that prefers small and mid-cap companies that can offer better risk/return, while most of the regional funds focus solely on 30-40 blue chips. Our focus on stock-picking and value-driven investments has resulted in lower volatility and risk level for our portfolios while providing market average or better returns.