It is impossible to produce superior performance unless you do something different from the majority.
— SIR JOHN TEMPLETON
Want different results? Take different steps. That means thinking differently. Researching differently. Behaving differently.
It is impossible to produce superior performance unless you do something different from the majority.
— SIR JOHN TEMPLETON
If you want safe, take the well-traveled road. But if you want remarkable, you must commit to being different.
We look for future potential, not past performance. Forget price-to-book, price-to-earnings, EV-to-EBITDA, and PEG ratios. Conventional thinking is unlikely to produce superior performance. Our unique approach buys existing demand on the cheap by focusing on companies trading at very low multiples to revenue. This builds a portfolio designed to harness the power of incremental improvement, often attracting both M&A interest and shareholder activists. If this sounds different, trust your instincts.
Value is the entry point. Traction is the edge. Once we identify companies believed to be substantially undervalued, we apply our proprietary VALT™ score to distinguish businesses with measurable momentum from those that appear stalled. The result is a more disciplined portfolio—one designed to avoid value traps, reduce downside risk, and compound returns across full market cycles.
Market‑based signals, including those used in VALT™, have limitations. No investment strategy can eliminate the risk of loss, and our process does not guarantee better outcomes.
If you aim to outperform, you must think outside the box, dance with volatility, and commit wholeheartedly—knowing that your mettle will be tested. Many investors feel volatility, think risk, and abandon ship. We flip the script, using volatility as a tool that creates price dislocation and opportunity. But our way is not for the faint of heart. Buying in is crucial. The Towle team is weathered, calm in the storm, and steadfast in our disciplined approach. And with over four decades of history to rely on, buying in is easy.