Strategic Launch of a Core Equity ETF by Avory & Co
The introduction of AVRY marks a significant step in the firm’s evolution as it expands its investment offering with a product designed to serve as a foundational long-term equity allocation for investors. The ETF has been constructed to reflect a disciplined philosophy centered on durability, conviction, and transparency, positioning it as a core building block rather than a tactical trading vehicle. By launching a concentrated and actively managed equity strategy, the firm aims to address the growing demand for investment vehicles that move beyond traditional index replication and instead emphasize thoughtful capital allocation. The new fund is built for investors who prioritize long-term compounding and business quality over short-term market narratives, offering an approach intended to weather multiple market cycles while maintaining clarity and consistency in its strategy.
Vision and Leadership Behind the Strategy
The ETF reflects the investment philosophy and leadership of Sean Emory, whose approach emphasizes long-term thinking, valuation discipline, and focus on foundational businesses. The leadership perspective behind the strategy highlights the belief that many modern investment products prioritize activity, trends, and market timing rather than durability and long-term value creation. The new ETF is positioned as a response to that trend, with the goal of offering investors a true core holding designed to remain relevant and resilient across changing economic conditions. This leadership vision underscores the idea that long-term investors benefit from stability, clarity, and a consistent framework rather than constantly shifting narratives driven by market cycles.
Purpose and Positioning as a Long-Term Core Holding
AVRY has been intentionally structured as a core portfolio allocation rather than a niche or satellite strategy, meaning it is designed to serve as a central equity exposure within an investor’s broader portfolio. The emphasis on long-term holding reflects the belief that wealth creation is most effectively achieved through sustained exposure to high-quality companies that demonstrate the ability to compound value over time. Instead of chasing rapid gains or market fads, the ETF is built around the principle that disciplined patience and thoughtful capital allocation lead to superior long-term outcomes. This positioning makes the fund suitable for investors seeking a stable, forward-looking equity foundation aligned with a long investment horizon.
Active Management Without Benchmark Constraints
A defining characteristic of the ETF is its active management approach that intentionally avoids traditional benchmark constraints. Unlike many funds that measure success relative to an index, the strategy prioritizes absolute long-term value creation and capital appreciation. This structure allows the investment team to allocate capital based on conviction and valuation rather than index weightings, sector quotas, or short-term market sentiment. By eliminating the need to mirror a benchmark, the fund gains flexibility to concentrate on companies believed to offer the strongest long-term opportunities, providing the freedom to diverge meaningfully from market indices when warranted by valuation or strategic considerations.
Concentrated Portfolio Structure and Conviction-Driven Allocation
The portfolio is expected to hold approximately 20 to 30 companies, reflecting a deliberately concentrated approach designed to emphasize conviction and depth of research. This level of concentration signals a strong belief in the selected businesses and their long-term prospects. Rather than spreading capital across hundreds of holdings to mimic diversification, the ETF seeks to build meaningful positions in companies that meet stringent quality and valuation criteria. The concentrated structure also enables deeper engagement with each investment thesis, ensuring that each holding is selected with careful analysis and long-term perspective in mind. This approach aims to enhance potential returns while maintaining discipline and focus.
Commitment to High-Quality Businesses with Durable Growth
At the core of the ETF’s philosophy is the focus on high-quality businesses positioned for durable and secular growth. These companies are expected to demonstrate strong competitive advantages, resilient business models, and the capacity to adapt and thrive in evolving economic environments. The strategy emphasizes businesses that serve as foundational pillars within their industries, meaning they play critical roles in long-term economic and technological progress. By targeting companies with sustainable growth drivers, the fund seeks to align investor capital with enterprises capable of delivering consistent value creation over extended time horizons.
Avoiding Short-Term Market Narratives and Trend Chasing
The ETF deliberately distances itself from thematic investing and short-term market narratives, which often dominate the modern ETF landscape. Instead of pursuing trending sectors or rapidly shifting themes, the strategy focuses on enduring fundamentals and valuation discipline. This approach reflects the belief that investment success is driven by long-term business performance rather than temporary market enthusiasm. By avoiding trend chasing, the fund seeks to maintain stability and reduce the risk of overexposure to volatile or speculative sectors, reinforcing its role as a reliable core holding.
The 6 M’s Framework as the Foundation of Decision-Making
A central pillar of the strategy is the proprietary 6 M’s framework used to evaluate potential investments. This framework provides a structured and repeatable process designed to maintain discipline and consistency in decision-making. By applying a comprehensive evaluation model, the fund ensures that each investment opportunity is assessed through multiple lenses, creating a balanced and rigorous approach to portfolio construction. The framework is intended to serve as a guiding compass for the investment team, helping to maintain clarity and focus across market cycles.
Evaluating Management Quality and Leadership Strength
The first component of the 6 M’s framework examines the quality of company leadership and management teams. Strong leadership is considered essential for long-term business success, as executives play a critical role in strategic decision-making, capital allocation, and corporate culture. By prioritizing companies led by capable and forward-thinking management teams, the strategy aims to invest in organizations that are well positioned to navigate complex and changing market conditions. This focus reflects the belief that effective leadership is a key driver of sustainable growth and long-term shareholder value.
Assessing Market Opportunity and Industry Potential
Another key element of the framework involves evaluating the size and durability of a company’s market opportunity. Businesses operating in expanding or resilient markets are more likely to sustain long-term growth and generate consistent returns. The ETF seeks companies that are positioned to benefit from secular trends, technological advancements, and evolving consumer needs. This forward-looking perspective ensures that investments are aligned with long-term economic drivers rather than short-term fluctuations.
Competitive Positioning and Long-Term Advantage
Competitive positioning is a critical factor in identifying companies capable of maintaining market leadership over time. The ETF prioritizes businesses with strong competitive advantages, such as brand strength, technological innovation, or unique market positioning. These advantages can help companies defend their market share and maintain profitability even in challenging environments. By focusing on competitive strength, the strategy aims to build a portfolio of resilient companies capable of sustaining growth over extended periods.
Margin Dynamics and Operational Efficiency
The framework also considers margin dynamics and operational efficiency, recognizing that sustainable profitability is a cornerstone of long-term investment success. Companies with strong margins and efficient operations are better equipped to reinvest in growth, weather economic downturns, and deliver consistent returns to shareholders. This focus ensures that the ETF emphasizes not only growth potential but also financial strength and operational discipline.
Valuation Discipline and Margin of Safety
Valuation plays a central role in the investment process, reflecting the belief that even the highest-quality companies must be purchased at reasonable prices to achieve strong long-term returns. The strategy incorporates a margin of safety to help protect against downside risk and ensure that investments offer attractive risk-reward profiles. By maintaining strict valuation discipline, the ETF seeks to avoid overpaying for growth and to enhance the potential for long-term capital appreciation.
Transparency and Investor Communication
Transparency is a key component of the ETF’s value proposition, with a commitment to providing regular and detailed communication to investors. The firm plans to publish weekly strategy updates explaining portfolio positioning, investment decisions, and alignment with the 6 M’s framework. This level of communication is designed to build trust and provide investors with a clear understanding of how their capital is being managed. By prioritizing openness and clarity, the ETF aims to differentiate itself in an industry where transparency is increasingly valued.
Long-Term Compounding as the Core Objective
The ultimate objective of the ETF is long-term compounding of capital through disciplined investment in high-quality businesses. The strategy reflects the belief that sustained exposure to resilient companies can generate meaningful wealth over time. By combining active management, concentrated holdings, and a rigorous evaluation framework, the ETF aims to provide investors with a dependable and forward-looking equity solution designed to endure across market cycles.
Availability and Access for Investors
With its launch, the ETF is now accessible to investors seeking a disciplined, transparent, and forward-thinking equity strategy. The fund’s availability represents an opportunity for investors to incorporate a carefully constructed core holding into their portfolios, aligning long-term investment goals with a philosophy centered on durability, quality, and consistent decision-making.
About Avory & Co
Avory & Co invests forward. The investment firm focuses on building long-term high conviction portfolios through disciplined research, valuation awareness, and transparent communication. The firm emphasizes quality businesses designed to endure across market cycles.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 563.320.1688. or visit avoryfunds.com. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk, including the loss of principal.
Past performance does not guarantee future results.
The Fund is distributed by PINE Distributors LLC. The Funds’ investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. Avory & Co. serve as the Sub-advisers to the Fund. PINE Distributors LLC is not affiliated with ETF Architect or Avory & Co.
Equity Investing Risk. An investment in the Fund involves risks similar to those of investing in any fund holding equity securities, such as market fluctuations, changes in interest rates and perceived trends in stock prices. The values of equity securities could decline generally or could underperform other investments.
Management Risk. The Fund is actively managed and may not meet its investment objective based on the Adviser’s or Sub-Adviser’s success or failure to implement investment strategies for the Fund
Non-Diversification Risk. Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may result in greater fluctuation in the value of the Shares and greater risk of loss.
New Fund Risk. The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. There can be no assurance that the Fund will grow to or maintain an economically viable size.
New Sub-Adviser Risk. The Sub-Adviser has no experience with managing an ETF, which may limit the Sub-Adviser’s effectiveness.
