Sir John Templeton
Towle & Co. executes a fundamental, bottom-up, value discipline that emphasizes the purchase of companies believed to be significantly undervalued relative to their private market worth. We look for well-seasoned companies with strong market positions in industries such as financial services, manufacturing, distribution, consumer products, transportation, and energy. While our deep value approach may include large capitalization stocks, the search for absolute value usually leads to equities with market capitalizations under $5.0 billion, an area commonly referred to as small-cap. Our years of experience and historical evidence indicate that companies with the highest rate of appreciation potential are most often smaller companies.
Why do smaller companies emerge as attractive stock selection candidates?