Avalon Advisors employs a fundamental, long-term approach in evaluating securities, seeks a return reflective of the underlying asset class for each account, and (where possible) aims to maintain lower volatility. The firm will raise cash reserves during periods of unusual market risk, but generally seeks to maintain a fully invested posture over a typical market cycle. Securities selected are generally expected to be held to be held for long-term capital gains, with the goal of providing higher after-tax returns. Avalon may suggest that clients invest in private funds some of which are managed by Avalon. They may also utilize hedging, options or derivatives and leverage to achieve investment objectives and may, for temporary defensive purposes, hold a significant portion of an account's assets in cash or cash equivalents should circumstances warrant.