Asset Value Investors

Asset Value Investors acts as the appointed investment manager for AVI Global Trust, a London-listed closed-end fund originally called British Empire Securities & General Trust. The firm manages the trust's portfolio under a delegated authority, while the trust itself is an independent publicly listed entity with its own board of directors. Joe Bauernfreund serves as both CEO of the management company and lead portfolio manager for the trust.

AVI does not wait passively for market re-ratings. When it identifies a holding trading at a persistent discount to net asset value, it engages directly with boards and management teams to demand specific corporate actions such as share buybacks, spin-offs, dividend increases, or outright asset sales. The firm has publicly campaigned for changes at portfolio companies including Tokyo Broadcasting System and Fujitec, and occasionally publishes open letters and presentations detailing its demands.

The portfolio concentrates on closed-end investment companies, family-controlled holding companies, and listed conglomerates where the sum-of-parts value materially exceeds the share price. Classic positions include European investment trusts like Pershing Square Holdings, Japanese industrial holding companies, and UK-listed trusts that themselves hold portfolios of private or illiquid assets. Direct operating companies are included only when the discount to intrinsic value is extreme and a catalyst for realization is identifiable.

Yes, like many investment trusts, AVI Global Trust can trade at a discount to its own net asset value. The board runs an active share buyback policy, repurchasing shares when the discount widens beyond a threshold, which both supports the share price and accretes net asset value per share. This creates a structural alignment where AVI's own managers benefit from the same discount-narrowing discipline they impose on portfolio companies.

Joe Bauernfreund is the chief investment officer and has ultimate authority over portfolio construction and activist engagement strategies. He works alongside a small investment team in London. Bauernfreund has led the firm's investment strategy since 2007 and oversaw the 2019 rebranding and mandate expansion to global deep-value opportunities.

Japan has historically been one of AVI's largest country allocations, often representing over 20% of the portfolio. The firm targets Japanese holding companies with large cross-shareholdings, excess cash, and depressed valuations — characteristics common in Tokyo-listed mid-caps. AVI contends that increasing pressure from the Tokyo Stock Exchange on companies to improve capital efficiency creates a structural tailwind for its activist campaigns in the market.

AVI has a track record of achieving partial or full concessions from target companies, though outcomes vary by jurisdiction and ownership structure. The firm has influenced share buyback programs at European holding companies and governance reforms at Japanese firms. Its public campaign during the Hipgnosis Songs Fund sale process in early 2025, though ultimately withdrawn, demonstrated the firm's willingness to contest deals it views as undervaluing assets.