We are dedicated to delivering truly independent and insightful securities research to clients that appreciate differentiated, honest, and quantitative and qualitative in-depth analyses of the companies and industries that we cover. We are afforded the opportunity to do so, because we have no investment banking ties, no sales people to please, and no trading group that have a need to further their own agenda. We are committed to delivering our definitive opinion on any issue, company, or industry that we cover without waffling, excessive hedging, and covering all issues not to be wrong. And, respectfully, we are not afraid to express opposing views to those of our clients, if we believe that our view has merit and would add to our clients' perspective on the issue at hand.
Passion: We are passionate about what we do and what we want to accomplish with respect to ourselves, our family, and our clients. We believe that anything worth doing must be done with passion, and what we do with passion is no longer a job, but a calling.
Integrity: We believe in ourselves and our integrity, and we are incapable of compromising on our integrity. Therefore, we deliver a product to our clients that not only reflect our passion, but also our uncompromising integrity.
Excellence: Therefore, we believe that what we do and present to our clients is of the utmost excellence and something that clients may rely on without reservation or suspicion. This is not to say that we are never wrong or that we don't make mistakes -- we have and we will -- but when we do, we will correct ourselves openly and as quickly as possible and strive to make sure that the same mistakes aren't repeated.
Products and Services: At present, we perform securities research on the energy infrastructure, power, and utilities sectors and select companies in those sectors. For companies, we write opening research reports, quarterly updates, and notes and Quick Notes as necessary and called for as subject matters warrant. For industries, we also write an opening research report, which is updated at least once a year, and write industry notes and Quick Notes as necessary and called for as subject matters warrant. We also provide comp sheets and our marketing packages upon request and when we visit with clients. We also entertain one-on-one client discussions and thought exchanges over the phone and in-person as warranted to discuss issues pertaining to our industry or company coverages.
Compensation: Clients that desire our research may subscribe to an annual subscription or make alternative arrangements by contacting us and discussing options.
Our Mission is to be Honest with YOU, our Clients
Conversation 1: "Why should any analyst care about what investment banking wants?"
Director of Research (DoR): "Because one investment banking deal can cover the $10MM in annual client revenue your coverage generates."
Conversation 2: "Why is it that [X] went from Associate to Managing Director in three years when [X's] team doesn't even generate 1/5th the trades that our team does?"
DoR: "Because [Mr. X] brings in investment banking revenue and your coverage isn't supported by investment banking."
These were two conversations that we had with one of our former supervisors. Add to the fact that analyst compensations were partially based on "capital markets-wide" revenue -- what we believed was code for investment banking revenue -- in our minds, there is no question that what poses as equity research today cannot be that helpful to the buy-side.
We hear all the time how analysts are working to ensure clients receive their best ideas, comprehensive analyses, and thought provoking, differentiated and value-added research. However, what we've found, and what our clients have told us repeatedly, is that the norm is "me-too" research, investment banking-oriented (or directed) research, or research that reflects the consensus view of the buy-side in order to garner favor with the most clients in order to receive II votes that lead to higher levels of compensation for the analysts and the companies they work for.
We may be wrong about our view and understanding of the landscape in equity research-land today, and if we are then we apologize for our misunderstanding. However, if you agree with us then take a look at what we do in comparison to what you're used to receiving as research. This is not to say that analysts and their teams working on the Street are dishonest people or that they lack integrity or are unethical. We believe that these people are doing what they believe to be the best to provide for theirs and their family's long-term well-being in the sense that what they do is safe, predictable, uncontroversial, and low-risk, and a path that has been well-worn by past analysts to maximize their net present value (NPV). So, we cannot and do not fault them for the path they have chosen, and we respect their decision to choose such a path and ensure that they and their families have a prosperous and secure financial future. And, most work really hard to try and balance demands from investment bankers, salespeople, traders, companies, and clients. And, many successfully achieve that balance and have a long and financially rewarding career. And, sincerely, great for them.
However, we'd like to think that there is another path that analysts and their teams can follow that not only fulfills our commitments as analysts to our clients to truly deliver our best ideas, comprehensive analyses, and thought provoking, differentiated and value-added research, but also to provide an uncompromising, rewarding, and ethical career path for those analysts and their teams that allows them to achieve their primary goal for working, which is to provide a financially secure future for themselves and their family.
This is the vision that prompted us to establish Auvila Research Consulting. By delivering to our clients our most thought-provoking, value-added, comprehensive research and ideas in a straight-forward and uncompromising manner, we believe that our clients would truly benefit from our research, which we believe would then lead to the financial well-being of our analysts and their teams, which then leads to a harmonious, long-lasting, and productive relationship with our clients. We believe that this is THE only way that equity research should be provided to help the buy-side perform at their best too.
If you agree with us and our approach to equity research then, please, take a look at what we've published and judge for YOURSELF whether or not we live by the words that we speak. And, if you like what you read, please contact us to find out how we can establish a harmonious, long-lasting, and productive relationship with you that is mutually beneficial. Thank you for your consideration in advance, and we look forward to speaking with you.
Some of our favorite quotes
- Equality isn't always just, but justice applied equally is always fair.
- You cannot fill a cup that is already full.
- You cannot dispel ignorance as long as arrogance thrives.
- All people are created equal, but don't die as equals.
- Socialism is great until you run out of other people's money.
- There's no such thing as sacrifice; only moral, value choices.
- Voting on something doesn't make it moral.