Alvia Asset Partners

There must be something in the water at Alvia HQ - following our win two weeks ago as Best Boutique Licensee at the IMAP Awards, the Alvia Family Office Fund has been named a Finalist for Best Multi-Strategy Fund in the Australian Alternative Investment Awards! We’re honoured to receive this recognition and proud of the continued hard work from our team. Looking forward to the awards night on the 25th September at the Hedge Funds Rock Gala and sharing the room with some of the industry’s best. Josh Derrington, Nathan Robertson, Eddie Barrett, Chris Scarpato, CFA, James Duffy, Daniel Martin, CFA, Jim Christensen, Matthew Morgan https://lnkd.in/eRi82pQA

We're proud to share that, for the second consecutive year, Alvia has been recognised as Australia's top Boutique Licensee in the 2024 IMAP - Institute of Managed Account Professionals Awards. This honour reflects our unwavering dedication to achieving strong, consistent investment outcomes for our clients. Alvia was also recognised as a Finalist in the Australian Equities category, and while we did not clinch this award, it’s a privilege to be ranked alongside such highly regarded investment managers. Well done to our investment team, led by CIO Josh Derrington, for their relentless commitment. Congratulations to all finalists and winners this year. Eddie Barrett, Nathan Robertson, Chris Scarpato, CFA, James Duffy, Daniel Martin, CFA, Jim Christensen, Matthew Morgan

At Alvia, we believe in the power of "quiet compounding" – a concept aptly encapsulated by Morgan Housel. It's about the gradual, under-the-radar growth that only a select few portfolios achieve. These are the portfolios built on unassuming but high-quality businesses with long-term reinvestment potential. Our CIO, Josh Derrington, recently highlighted this in our latest letter to investors. He emphasised that in today's market, dominated by the noise of AI mania and rapid-fire trading, it's easy to overlook the steady compounders. But it’s these quiet performers that often deliver the most consistent returns over time. One such example is PayPal – a robust business that has faced recent headwinds, making it less interesting to the market at large. Yet, its powerful cash flows and disciplined share repurchases align perfectly with our "quiet compounding" strategy. At Alvia, we don't chase hype. Instead, we patiently invest in companies that build value steadily, away from the spotlight. This approach echoes the wisdom of Glenn Fogel, CEO of Booking Holdings (NASDAQ: BKNG), who said in their recent Q2 earnings call: "There's going to be volatility, there's going to be variations, there's going to be events that happen globally, macro events that can influence a quarter or a week or a day. But in the long run, we just continue to build what we've been trying to build for a long time, which is a better service, and that's how we do it." At Alvia, we too are focused on building – quietly, patiently, and with unwavering discipline. Nathan Robertson, Eddie Barrett #Compounders #AbsoluteReturns #Patience

Alvia CIO, Josh Derrington, and CEO, Nathan Robertson, enjoyed sitting down with The Business Of podcast recently. Charlie Selth and Will Chapman did a great job of getting to the crux of how we navigate the complexities of allocating capital across public and private markets while staying true to our core values. Thanks Charlie and Will for the opportunity to delve into Alvia's investment philosophy. #familyoffice #investmentmanagement

We are thrilled to be a finalist in two categories for the 2024 IMAP Awards: Boutique Licensee and Australian Equities! This recognition builds on our success from last year, when we won the Boutique Licensee category and were finalists for International Equities. This is a testament to our unwavering dedication to delivering exceptional investment outcomes for our clients. Congratulations to all the other finalists! #AustralianEquities #MultiAsset #AbsoluteReturns #ManagedAccounts Josh Derrington, Nathan Robertson, Eddie Barrett, Chris Scarpato, CFA, James Duffy, Daniel Martin, CFA

Guzman Y Gomez has opened about 1 store a month on average since their Surry Hills founding in 2005. The company needs to increase this to almost 1 new store a week to achieve their ambitious growth plans to rival McDonald's ~1,000 stores in 20 years (a feat that took Macca's over 50 years). And this at a time of exorbitant construction and operating costs. Nonetheless, the IPO two weeks ago saw plenty of hype, with the stock rallying 36% on the day, giving the sub-200 store fast-food chain an eyewatering $3 billion valuation. We don't get it. At an implied valuation of ~40 times 2025 EBITDA, management execution needs to be impeccable (and some), otherwise there presents material downside risk. On a risk-adjusted basis, we're comfortable waiting this opportunity out to see if management can prove themselves in the unforgiving listed equities environment. In the meantime, on a relative basis, we see a compelling opportunity in Domino’s Pizza Enterprises, which trades at less than half the valuation and has a proven track record across a number of markets. Listen to more on this in Alvia Portfolio Manager, Chris Scarpato, CFA's latest ausbiz interview. Josh Derrington, James Duffy, Daniel Martin, CFA https://lnkd.in/g98EBbV3

Our CEO, Nathan Robertson, recently discussed the surge in #privatecredit with Andrew Cornell from Capital Brief. While there's been no shortage of private debt deals this past year, we remain cautious about the quality and risks involved in many of these given the market's rapid expansion. Private debt, driven by the withdrawal of banks from non-core parts of the market and investors' search for #yield, is undeniably a hot topic. With assets expected to nearly double by 2028, it's crucial to recognise that not all deals are equal. Despite the hype, we've been selective in deploying capital, thoroughly vetting each opportunity to ensure it aligns with our capital preservation-first mindset. Josh Derrington, Eddie Barrett, James Duffy, Chris Scarpato, CFA

We like CPAP maker ResMed, and bought it after it sold off 40% in 2023. The drop was fueled by speculation that GLP-1 weight loss drugs would mean the end of sleep apnea. We didn't share this view. Sleep apnea has many causes beyond obesity. In this ausbiz interview, Alvia Portfolio Manager Chris Scarpato, CFA, explains why we sold Ozempic-maker, Novo Nordisk, after securing a 35% annual return for our clients over the past five years, and bought ResMed. John Neff, the legendary contrarian investor, once said, "It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognised." We're quite content to look through the hype often caused by thematic investment theses and be the #contrarian in the room. Josh Derrington, Nathan Robertson, Eddie Barrett https://lnkd.in/gyEkrtqm

We adopt a #privateinvestor mindset for all capital allocation decisions - including both public and private markets. Our CEO, Nathan Robertson, recently wrote about the five principles that guide our strategy, as covered in Financial Standard. 1. Treat stocks as businesses 2. Control your temperament 3. Think in terms of probability and opportunity cost 4. Read and think broadly, then invest narrowly 5. Wait for a reasonable entry point, using volatility as a pricing opportunity rather than a measure of risk Head to the link below to find out more about our approach to #familyoffice investing. Josh Derrington, Eddie Barrett

Our CIO Josh Derrington sat down with Ensombl's James Wrigley this week to dive into Alvia’s approach to absolute return investing and why it particularly strikes a chord with family offices. Josh shares our perspectives on asset allocation as a tried and tested risk management tool, our affinity for “good, boring businesses”, and our patient approach to private markets. Listen to the full episode here: https://lnkd.in/guBGuhvM Thanks James for having us! #AbsoluteReturns #AssetAllocation #FamilyOfficeInvesting