Avala Global’s Nettimi Navigates Talent Turnover, Eyes long-Term growth

Updated June 12, 2025

Divya Nettimi, founder of the $1.9 billion Avala⁣ Global, remains focused on the long term despite early ‍volatility and talent shifts. In an interview, Nettimi said she evaluates companies based‍ on their potential ⁢a century from now. Her hedge‍ fund, which began trading in October 2022, seeks to look beyond ⁣short-term market fluctuations⁤ unrelated to fundamental company performance.

Nettimi emphasized the importance of sticking to a core investment process. ⁣Her firm, notable as the first billion-dollar hedge fund launched by a woman, has experienced its share of challenges. These include⁢ significant turnover among its initial team and a 14% drop⁤ in ⁤March amid turbulent markets.

While most of the original team has departed, including the entire four-person investment⁢ team, Nettimi⁣ expressed confidence ⁣in her ⁤current team and investment strategy. The investment staff has grown to⁤ nine members, excluding Nettimi, and now includes more experienced public market professionals such as Jordan Straff, formerly of Bridger Capital.

According to a source close to the New York-based manager, Avala has recovered its first-quarter losses and is up 6% for the year following a 10% gain in May.Nettimi believes ⁤Avala is on track as it approaches its third anniversary, a crucial milestone for attracting institutional investors.

“This is part⁢ of the natural evolution of the firm,” she said.

Nettimi views the current team’s ⁣experience as outweighing the loss of six ⁢original members. she noted that Avala’s success, with returns of 23%⁢ and 21% in 2023 and ‍2024, has broadened the talent pool. These returns surpassed ⁢the average fund and even Viking Global, Nettimi’s former firm, during the same period.

To address cultural fit, Nettimi said Avala enhanced its recruiting⁢ process six months after launch to ⁣include more culture-focused testing. She also noted that she seeks individuals who ‍are eager to contribute beyond their primary roles, reflecting the less bureaucratic nature of young⁢ firms.

One investor in the firm described the turnover as⁢ typical⁤ for a startup fund. However, some recruiters and prime brokers found the level of movement unusual for a high-profile launch with solid performance. Don⁣ Steinbrugge, founder of agecroft Partners, noted that high turnover can⁤ reduce a fund’s marketability, as investors worry ⁢about the impact on investment strategy.

Former employees have criticized Nettimi’s management style, with some ⁤alleging communication issues. Avala declined to comment on these specific claims. However, former Viking colleagues have expressed⁢ positive views of Nettimi, with‍ one hoping to collaborate with her again. Joe McLaughlin, another former Viking employee, ⁣is currently on Avala’s ⁣investment staff.

As‍ Avala has expanded to 16 staffers,⁤ the hiring process has⁤ become more rigorous, ‍involving multiple interviewers ‍to better assess candidates. Recent additions ‍include Rebecca⁤ Chia, formerly of Atalaya and Third Point, as head of capital‍ partnerships.

Despite⁢ Avala’s worst ⁤quarter on‍ record, Nettimi remains optimistic. She believes the current surroundings is favorable for concentrated stock pickers. She added, “we don’t chase” short-term gains, but focus on long-term investment strategies.

What’s next

Avala Global aims to continue building ⁤its⁤ track record and attracting institutional investors as it approaches its⁣ third anniversary. The firm will likely focus on refining its investment strategies and further developing ‍its ⁢team to capitalize on long-term opportunities in the market.