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As of September 30, 2021

 

Annualized Deep Value Composite (DVC) Returns1

3-Mon2 1-Year 3-Year 5-Year 10-Year 20-Year 30-Year SI3
DVC Gross -3.0% 68.3% 4.8% 9.7% 14.3% 13.0% 15.2% 15.5%
DVC Net -3.2% 67.0% 4.0% 8.9% 13.5% 12.1% 14.4% 14.7%
R2K Value -3.0% 63.9% 8.6% 11.0% 13.2% 9.8% 11.1% 11.9%
S&P 500 0.6% 30.0% 16.0% 16.9% 16.6% 9.5% 10.6% 12.1%
Composite returns are preliminary. Past Performance is no guarantee of future outcome. Refer to the disclosures below for additional information.

 

Top Ten Holdings8

Ticker Company Weighting
ALLY Ally Financial Inc. 5.96%
DXC DXC Technology Company 4.86%
ADNT Adient PLC 4.56%
PUMP ProPetro Holding Corp. 4.53%
HFC HollyFrontier Corporation 4.42%
DBI Designer Brands Inc. 4.24%
LBRT Liberty Oilfield Services Inc. 4.19%
RYI Ryerson Holding Corporation 3.96%
DAN Dana Incorporated 3.85%
TMHC Taylor Morrison Home Corporation 3.60%
Total 44.18%

 

Characteristics8

Weighted Average Capitalization ($Mil) 6,055
Median Market Capitalization ($Mil) 1,675
Median Price / Earnings (ttm)6 12.58
Median Price / Book Value 1.70
Median Price / Sales (ttm) 0.45
Median Debt / Equity 1.19
Median EV / EBITDA (ttm)6 6.44
Weighted Average Dividend Yield 0.68
Active Share (%)7 98
Percent Turnover (ttm) 41
Number of Holdings 31

 

 

 

  1. Returns are preliminary and subject to change. Past performance is no guarantee of future outcome. Results are calculated using a time-weighted total-rate-of-return method and are expressed in U.S. dollars. Results include the reinvestment of all income. Gross of fee performance is presented as supplemental information and reflects the deduction of all trading expenses, except in those accounts where ABP (Assets-Based Pricing) fess are assessed in lieu of standard trade commissions. Net of fee performance was calculated using actual management fees and ABP fess. Although Towle & Co. makes no attempt to manage against the composition of a specific benchmark, the Firm provides the Russell 2000 Value Index as a readily accessible indicator of comparative performance as well as the S&P 500 Index as a general indicator of the market at large. The performance of an index is not an exact representation of any partcular investment as one cannot invest directly in an index and investments made by Towle & Co. differ in comparison to the Russell 2000 Value Index in terms of security holdings and industry weightings. Towle & Co. invests in considerably fewer companies than either index with lower multiples to book value, sales, earnings, and cash flow, and as a result, the volatility and returns of the benchmark index may be materially different from the individual performance attained by a Towle & Co. investor. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Portfolios included in the Towle Deep Value Composite seek above-average capital appreciation over the long-term by investing in publicly-traded common stocks of companies that are trading at what we believe to be significant discounts to their intrinsic values. The search for absolute value usually leads to smaller capitalization stocks, a market segment where a majority of investment firms neglect thousands of well-seasoned, “main street” companies. Consequently, many portfolio companies have market capitalizations under $5 billion, though a number may exceed that amount. The composite includes all fully-discretionary, taxable and tax-exempt portfolios that have been under the Firm’s management for at least one entire month. The composite was created in January 1982.

  2. Not annualized

  3. Inception = January 1, 1982

  4. Sector Weightings are based on the GICS classification scheme.

  5. Micro Cap = Companies with a capitalization less than $400 Million
    Small Cap = Companies with a capitalization between $400 Million - $3 Billion
    Mid Cap = Companies with a capitalization between $3 Billion - $10 Billion
    Large Cap = Companies with a capitalization greater than $10 Billion

  6. Excludes negative earnings

  7. The percentage of portfolio holdings that differ from the Russell 2000 Value Index

  8. Representative, fully discretionary portfolio managed in the Towle Deep Value strategy and member of the Towle Deep Value Composite

  9. Under no circumstances does the information contained within represent a recommendation to buy, hold or sell any security. The companies identified in this communication do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable. All material presented is compiled from sources believed to be reliable, but no guarantee is given as to its accuracy.

  10. Source: CapitalIQ, Axys