HOW TIETON CAPITAL IS DIFFERENT
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 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 that information, and 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.
WHY THE “TIETON” CAPITAL MANAGEMENT NAME
Bill’s wife’s great-grandparents owned and operated the Tieton Dairy in the 1930s and 1940s. Also, Bill has whitewater rafted the Tieton River, which is near Tieton Peak and Yakima. “Tieton” satisfied the founders’ desire to identify a name that had local awareness, while also being unique enough to be differentiated from the national competition.
WHERE IS YAKIMA, WASHINGTON?
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.
Yakima is located on the eastern slopes of Mt. Rainer, Mt. Adams, and the Cascade Mountain range in the south central region of Washington State. We are 140 miles southeast of Seattle on Interstate 82 off of Interstate 90.
The warm, dry weather is ideal for growing fruit and places Yakima in the heart of the world renowned Washington apple country. Yakima also sits at the northern edge of the burgeoning Washington wine country. Interestingly, we are at approximately the same latitude as the famous wine regions in France.