Avoca Investment Management

We have been cautious on the (inflated) prices of quality / long duration equities for the past two years. Over this time, the valuation metrics of these quality equities have gone up, in some cases dramatically. The metrics of pretty much every other equity style (e.g. industrial cyclicals) have remained... Show More

Avoca Investment Management

During the month of January, equity investors showed little apparent concern for value. As we write this report, the market is becoming increasingly concerned with nascent inflationary signs and rising interest rates. The momentum of investor fuelled, low volatility / low interest rate trade that has grossly inflated pockets of... Show More

Avoca Investment Management

The Australian housing sector is critical for both the economy and stock market. New dwelling construction and renovations create jobs and rising house prices creates wealth, which then flows into retail and other consumer-facing sectors. Importantly, new housing activity has tended to run counter-cyclical to the resource CapEx cycle, dropping... Show More

Avoca Investment Management

Everyone loves a roll-up: Buy assets on a lower multiple to the one that you currently trade on and grow EPS. It’s as simple as that. Often the strategy doesn’t even require synergies to make it work. It can work whether or not the underlying market is exhibiting growth. If... Show More

Avoca Investment Management

In the podcast below, Jeremy Bendeich, Chief Investment Officer and Portfolio Manager at Avoca Investment Management discusses his overall impressions and trends for the reporting season. He discusses the following six key points: Show More

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