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Egalitarian Approach to High Conviction Fund Proves Lucrative for the Collective

A boutique investment firm is giving its clients equal access to opportunities through their high-performing High Conviction Fund to help every client get a firm foothold on the wealth ladder.

By adopting an egalitarian approach to their High Conviction Fund, Alvia Asset Partners is turning the tables on the typical approach to these types of funds of only giving access to ultra-high net worth investors able to invest upwards of $500,000 at a time.

Director Eddie Barrett said the firm was able to use the fund to give all their clients access to these allocation opportunities, instead of applying price-driven barriers to entry to justify locking them out.

“We continue to scrutinise a full range of opportunities, taking note of those investment openings that we assess are likely to generate meaningful returns to add to our High Conviction Fund.

“Where we differ to other investment firms is that we don’t concentrate on one type of asset class, market or even style of investment – we have a broad mandate.

“So, while it’s probably not typical to have listed market investments with the ASX or other global exchanges in addition to private operating businesses, if we identify an opportunity to invest in – or even facilitate an investment opportunity – and can tip some of the allocation into our High Conviction Fund and give access to clients with more modest wealth, then that’s what we’ll do,” he said.

Barrett pointed out that typically the majority of investors are denied access to many of these investment opportunities, despite being at a stage in their lives when they are looking to more aggressively build their portfolio.

“Just say an individual investor wanted to buy into a private business. Then they’d have to allocate significant capital to buy the whole business to get access to that investment opportunity. Instead, we’re offering those investor clients, who can't buy that business outright, exposure to that investment through a fund - it's unique,” he said.

And the strategy appears to be paying off with Alvia’s High Conviction Fund generating a return of 29.8 percent in its first calendar year.

“Our approach to selecting appropriate investments for our High Conviction Fund is to be rigorous in our research, equitable in our allocation and dispassionate in our selection.

“While some investment firms are allowing their investment choices to be swayed by a degree of ‘wokeness’, we apply a different lens, making bold, but data-driven decisions that centre around real – not perceived – movements in the market.”

Barrett said the firm as a whole decided on the strategy they would take when they started the fund just over 12 months ago.

“We studied the market and saw that despite what they said, many firms were high on rhetoric but low on conviction when it came to what they included in their funds – we are committed to the exact opposite,” he said.

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