Alvia Asset Partners

With the U.S. election outcome stirring markets, Alvia is on the hunt for pockets of value. Last night, the US market rallied hard, leaving many international markets trailing. This divergence presents distinct opportunities in often-overlooked areas, particularly China, where US tariff fears have suppressed the market. Rather than focusing on export-driven plays, we’re prioritising China’s internal consumption story. Take ANTA Sports (HKG:2020) for example - a company with industry-leading margins and steady 10% annual growth, without relying on export revenues. Currently trading at a material discount to its Western peers, ANTA reflects an undervaluation driven by broader market sentiment, as our Portfolio Manager, Chris Scarpato, CFA, shared with Juliette Saly on ausbiz. Opportunities like these, where short-term sentiment deters others, are where we uncover real long-term value. At Alvia, our focus remains on high-quality companies, even when that means taking a contrarian stance. Josh Derrington, Nathan Robertson, Eddie Barrett https://lnkd.in/gnAdyKhr

Australia's wealthiest investors are evolving their investment preferences, with a clear shift toward growth assets and private markets. This week our CEO Nathan Robertson shared insights with The Australian Financial Review's Michelle Bowes on why private equity is gaining ground, with 21% of HNW investors now active in private markets. However, Nathan cautions that private market investing comes with considerable risks, especially for those with less experience. "Ultra HNWs have a much longer time horizon; they’re thinking about their wealth not just in terms of five, 10, or 15 years, but generationally and therefore having larger exposure in illiquid markets is much more tenable than for retail investors." - Nathan Robertson Josh Derrington, Eddie Barrett https://lnkd.in/gnzuwapP

We thrive on finding opportunities where short-term market pressures create long-term value. Our approach often means taking a contrarian stance against prevailing market sentiment - focusing on high-quality companies that others may overlook due to short-term noise. Take Nasdaq-listed VERISIGN and VEEM Ltd (ASX:VEE) for example. VeriSign, with its monopoly on .com and .net domain names, holds a unique position in the market, offering strong pricing power and consistent revenue. Meanwhile, Perth-based VEEM is making waves with its innovative marine gyro stabilisers, helping vessels reduce fuel consumption and environmental impact. While many focus on immediate earnings or cost pressures, we step back to see the broader opportunity. Our focus remains on the long-term potential. Portfolio Manager Chris Scarpato, CFA joined Juliette Saly on ausbiz to discuss why these companies are catching our eye. Josh Derrington, Nathan Robertson, Eddie Barrett https://lnkd.in/g98Ntm6W

Four years ago, in the thick of the COVID-19 pandemic, we launched the Alvia Family Office Fund. Fast forward to today, and we’re proud to mark this milestone with a fund that’s delivered 14.0% p.a. (inception to Sep 2024), placing it in the top 1% of Morningstar’s multi-asset growth category – ahead of 118 other funds. Launching in 2020 was tough. Markets were volatile, uncertainty was extreme, and the road ahead was anything but clear. Yet through all the ups and downs, our disciplined and unconstrained approach, with a primary focus on managing risk, has paid off. The four year anniversary of the fund coincided with it being named Finalist for Best Multi-Strategy Fund at the Australian Alternative Investment Awards. While we didn’t take home the award, being in the mix is testament to the trust our clients place in us and the hard work of our team every day. As Josh Derrington puts it: "It’s not just about weathering the storm; it’s about positioning for what comes when the storm clouds clear." Thank you to everyone who’s been part of this journey – we’re only just getting started. Nathan Robertson, Eddie Barrett, Chris Scarpato, CFA, James Duffy, Daniel Martin, CFA, Mitchell Simmons, CFA

We’re closely watching the revaluation of the Chinese equity market. Trading at near-record low valuations, weighed down by concerns over property bubbles, political challenges, and trade tensions, the recent sell-off is understandable. But when a market of this scale falls by 50%, it deserves a closer look. Historically, the Chinese equity market has delivered positive returns 100% of the time after a trough in PE multiples, with a median return of 21% one year post-trough. We aren’t backing up the truck, but we are dipping our toes in. Take Alibaba for example... while many investors are put off by negative sentiment and the company’s structural complexities, it’s easy to throw Alibaba into the “too hard” basket. But we see an intriguing valuation. By 2028, projected cash flows are estimated at ~$25 billion, with a balance sheet of $70 to $150 billion (depending on your valuation method), and a $35 billion buyback program by 2027, plus dividends. These are compelling numbers for a business with solid operational performance, despite the market’s continued reluctance. While higher prices often attract higher allocations, we find that doing the opposite has proven rewarding for patient, long-term investors. #ChineseEquities #ValueInvesting #Contrarian #IndependentThought Josh Derrington, Nathan Robertson, Eddie Barrett, Chris Scarpato, CFA

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