Active Management, Quality, and Value: The AVUS Trifecta
March 2, 2021
Cyclical value stocks are on the mend, but quality should be a priority when investors hunt for value. The actively managed
AVUS “pursues the benefits associated with indexing (diversification, low turnover, transparency of exposures), but with the ability to add value by making investment decisions using the information in current prices,” according to Avantis Investors. The fund features an “efficient portfolio management and trading process that is designed to enhance returns while seeking to reduce unnecessary risks and costs for investors.”
AVUS is rooted in an academically-supported, market-tested framework aiming to identify securities with expected high returns based on market prices and other company information. Relying on trading and portfolio management processes, the Avantis team analyzes whether the perceived benefits of a trade overcome its associated costs and risk.