Tieton Capital is a boutique. We understand that the investment industry may appear homogeneous at first glance. However, Tieton is uniquely different from the competition.
The firm has an unwavering commitment to its mission to increase its clients’ wealth. The Investment Team consistently visits with companies in the portfolio, those that are being considered for purchase, competitors, suppliers and customers. We diligently work to understand the issues the companies are addressing, the industry dynamics, how the strategic plans are being executed, and progress made relative to Tieton’s identified catalysts. Tieton avoids relying on Wall Street analysts for information; instead, we relentlessly seek information directly ourselves — “We Pack Our Own Parachute.”
It is understood that everyone has access to the same information. Finding and interpreting that information, along with what one does with that information, is what counts. The passion that the Investment Team has for the investment business, combined with the intense, proprietary research process, is a significant differentiator. Corporate officers often tell us the time devoted to understanding their business, and our detailed analysis, is different from the peers.
The low historic turnover is an indicator that the Investment Team focuses on buying and owning businesses, letting the management teams execute their strategic plans, and letting the identified catalysts develop. The competition generally has higher turnover, which indicates they may often lose patience and exit too soon.
Tieton Capital avoids handcuffing the portfolio by forcing the Investment Team to mimic the weightings of the respective indexes. Tieton believes this handcuffing is in effect “closet indexing” and near average results is the best that a client can ever expect to achieve. Because Tieton generally has weightings different from the indexes, it is expected that performance will be different from the indexes.
Tieton Capital Management will close the Small Cap Value strategy to new assets at $350 million under management. This will allow Tieton Capital to continue owning a portfolio of 25 to 35 companies focused on our best ideas. In addition, clients will benefit from the ability to continue owning companies on the smaller end of the small cap spectrum.
Tieton Capital is headquartered in Yakima, Washington, which allows the Investment Team to “Avoid the Noise of the Street” and focus on what we deem to be most important. The Team’s unique emphasis on each company’s competitive position and catalysts is anticipated to continue yielding positive results for clients.
Proactive service is provided with a helpful, constructive approach, which is designed to keep clients well informed and build long lasting client relationships.