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AVI Global seeks growth by targeting family value

Joe Bauernfreund tells Leonora Walters why investing in family companies can be a good way to get exposure to a broad range of high-quality businesses
AVI Global seeks growth by targeting family value
  • AVI Global Trust invests in family controlled holding companies
  • Its managers think that they are good ways of getting exposure to broad pools of assets, businesses and high quality assets at attractive valuations
  • A disadvantage for other shareholders in a family controlled holding company is that they cannot exert much influence

AVI Global Trust (AGT) is perhaps best known for its value investment approach, which sets it apart from the many other global funds which have a growth investment style. An even more distinctive characteristic is its manager’s, Joe Bauernfreund’s, aim to invest the trust in family controlled holding companies. These tend to be listed on European and Asian stock exchanges but are a rarity in the UK.

“We think that [family controlled holding companies] are remarkably attractive ways of getting exposure to broad pools of assets, businesses and high quality assets at remarkably attractive valuations,” explains Mr Bauernfreund. “They make up around 35 per cent of AVI Global Trust’s assets, and are an area of the market which is neglected and over looked. Hence their pricing is inefficient and they can trade at very wide discounts.”

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