1980s: Inception
J. Ellwood “Woody” Towle opened Towle & Co. in 1981 with $1 million in assets under management following a career in corporate M&A. This entrepreneurial pivot nourished Woody’s independent spirit, ultimately producing a value investing pioneer.
Woody's early success demonstrated that investing in stocks with low multiples to revenue often led to companies with untapped earnings capacity, where small improvements can drive positive earnings surprises and stock outperformance. This pivotal insight forms the bedrock of the Towle Way.
1990s: Disciplined Growth
As the Towle team grew, we embraced new ideas and streamlined operations, developing into an institutional asset manager driven by an independent mindset. During the dot-com bubble we distinguished ourselves in the marketplace, staying disciplined amidst the frenzy in growth stocks.
2000s: Durability and Resilience
The early 2000s witnessed a bull market in small-cap value stocks, highlighting the power of a disciplined value investment approach. However, the Great Financial Crisis tested the resilience of many investment managers, including us. Our strong balance sheet and substantial personal investment played a crucial role in weathering the storm while sticking to our investment discipline.
2010s: Renewal
In response to increasing demand, we introduced our listed mutual fund to cater to an expanding client base. With our investment team growing, the firm was invigorated with renewed energy, enriched by data-driven insights, and empowered by a continuously evolving perspective on risk management.
2020s: Expansion
In 2020, we relocated our headquarters from St. Louis, MO, to Denver, CO, coinciding with the establishment of an exceptional operations and client servicing team. In 2022, we launched a risk-managed private fund available to qualified purchasers to complement our flagship small-cap value strategy. With a value investing legacy spanning over four decades, we eagerly anticipate the decades ahead.
