As times have changed and markets have migrated, our methods have evolved, but the mission is the same: stay focused, don't get swept up in the heat of the moment, and uncover hidden value for our investors.
We dig deep to identify investment opportunities with low multiples to revenue and significant earnings capacity, where small improvements can produce large gains. Our portfolio is concentrated, cyclical, eclectic—and decidedly different.
We may be warm, effusive people, but we're cold, unemotional investors. The Towle Way is a process-driven assessment that evaluates each company's earnings capacity, history, capital structure, governance, management, and industry. It is deliberate. It is disciplined. It is repeatable. And it turns undervaluation into a strategic advantage.
We don't turn on autopilot after a position has been established. Our portfolio companies are actively tracked for positive or negative developments that impact earnings capacity. We are keenly aware that every position we hold carries a high opportunity cost, and we are always on the lookout for ways to recycle proceeds and keep our portfolio cheap.