History

Sponsored research geared to the institutional investor.

Founded in 1995, Avalon Research was one of the original 'independent' research companies focusing solely on the institutional investor. Avalon's research turned upside down the existing paradigm of using Wall Street professionals with little or no business experience in the industries they were following. Avalon employed "Main Street" industry experienced professionals coupled with traditional Wall Street analysts to produce new insights into companies under Avalon coverage. Avalon's specialty was information arbitrage capitalizing on Street misperceptions and lack of information on both the long and the short side.

Avalon was sold to a public company in 2004. Through a series of reorganizations at the parent company, Avalon's founder bought back the company in late 2005.

Avalon's clients were many of the leading hedge funds and brand name mutual funds. Avalon was the subject of much press and recognition for its independent stance and institutional quality insights.

Through its proprietary S.T.E.P. Approach, Avalon was able to break down and clarify the most complex stories and articulate them to potential investors.

  • We believe an abundance of information creates a deficit of attention.
  • Simplicity must be the starting point for any interest.

Avalon built its reputation on factually accurate straight-forward research. Professional portfolio managers are inundated with stock ideas. The S.T.E.P. Approach was specifically created to walk a professional portfolio manager through an idea while covering all the important details and highlighting the opportunities. This discipline ensures a complete and accurate picture and is designed to give the professional investor 90% of the information needed to make an investment decision.

Significant changes in the research industry have left the majority of smaller cap companies with little or no research coverage. Small and micro cap companies are one of the last bastions of true information arbitrage available today. The new Avalon has been charged with providing institutional quality sponsored research for smaller cap companies in compelling situations.

The payment model has changed, but the quality and focus of the research hasn't. Avalon still utilizes many of its former analysts and maintains its relationships with the institutional investment community.