Dear Friends,

For the first six months of 2019, Andvari is up 38.7% net of fees while the S&P 500 is up 18.5%.1 The table below shows Andvari's composite performance figures against two benchmarks while the chart shows the cumulative gains of hypothetical $100 investments.




At Andvari, we have a deep appreciation for how the qualitative factors of a company are likely to drive long-term business performance and long-term results for shareholders. We obviously look for and appreciate executives who are high achievers with good resumes, but we want to know more. Are they honest, kind, and humble or are they dishonest, unpleasant, and arrogant? How much energy do they spend on doing right by their customers, employees, communities, and shareholders? Do they have a background that distinguishes them from the stereotypes (e.g., Ivy League alumnae who are endurance athletes) one often finds in the management ranks of most public companies?

Andvari has invested in many companies whose managers we believe are better than the average manager/executive. The average manager at a large company is often just a caretaker who will do well for themselves regardless of the actual outcome of the business for which they are responsible. A large portion of the managers running the companies in which Andvari has invested all have unique backgrounds. Most are founders and entrepreneurs. Most have something to prove to themselves and to their prior employers. All have long-term mindsets when it comes to creating value and growing their respective businesses, and they all are humble and generous.



I remain pleased with our performance this year. Good performance like we've experienced is a testament to our "careful and concentrated" strategy, our patience for the long-term potential of our investments, and the flexibility and trust that clients have given to Andvari.

I love to hear from clients and interested parties about all topics. Please contact me with your thoughts, comments, or questions. I wish you a safe and happy summer and beginning of autumn.


Douglas Ott

[1] Performance data quoted represents past performance and does not guarantee future results. "Andvari Total" represents all of Douglas Ott's investment accounts and all the discretionary accounts Andvari manages where it takes an active role in picking individual stocks and receives a fee. From 12/31/12 to 4/12/13 results included only Ott’s personal and retirement accounts—the first Andvari clients transferred their accounts on 4/12/13. Andvari believes including Ott's performance figures for the first 4 months of 2013 is fair as he managed those assets similarly to later clients. Results are net of management fees (1% per annum), time-weighted, and includes all cash and other securities. The indexes are listed as benchmarks and are total return figures and assumes dividends are reinvested. The S&P 500 Total Return Index is a float-adjusted, capitalization-weighted index of 500 U.S. large-capitalization stocks representing all major industries. The Russell 2000 Index is an index of 2,000 U.S. small-cap stocks. It is not possible to invest directly in an index. Because Andvari is non-diversified, the performance of each holding will have a greater impact on Andvari's results and may make them more volatile than a more diversified index.


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Investment strategies managed by Andvari Associates LLC ("Andvari") may have a position in the securities or assets discussed in this article. Andvari may re-evaluate its holdings in such positions and sell or cover certain positions without notice.

This document and the information contained herein are for educational and informational purposes only and do not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This document contains information and views as of the date indicated and such information and views are subject to change without notice. Andvari has no duty or obligation to update the information contained herein. Past investment performance is not an indication of future results. Full Disclaimer.

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