TMCnet News
Walthausen & Co. Puts Big Focus on Tiny StocksIn response to increasing demand for active management in the stock market's smallest companies, Walthausen & Co., LLC has launched their Micro Cap Value strategy, focusing on companies with market caps from $50 million to $1.0 billion. The strategy will be co-managed by John Walthausen and Gerard Heffernan. "The opportunity available in the smallest market cap stocks is very attractive right now as more attention has been paid to this group as a result of recent tax and regulatory changes," said John Walthausen, Founder, Chief Investment Officer and Portfolio Manager. "We have always had a focus on micro-cap stocks. In fact, this strategy plays to our strengths in selecting quality companies with attractive upside potential that typically are overlooked." The decision to offer this strategy was a result of the team's outlook for companies with market capitalizations below $1 billion. Over the past 10 years, the firm has consistently uncovered sound companies at the lower end of the market cap range that deliver long-term shareholder value through high return on invested capital, strong cash generating capabilities an disciplined uses of cash. Even if the U.S. economy slows or interest rates rise, companies in this market cap range have typically done well during periods of rising interest rates and inflation. "Our decades of experience in the micro-cap space has afforded us with a wealth of knowledge on companies over various market cycles that have been good drivers of shareholder value," states co-portfolio manager, Gerard Heffernan. "Whichever direction the economy goes, we believe that the smaller end of small cap will provide meaningful opportunity, particularly those we strive to own that have elements of price control and leadership within their given industry group." About Walthausen & Co., LLC Walthausen & Co. has grown from its inception in August 2007 to approximately $1.3 billion in assets under management as a result of its strong reputation as an investment management firm and the success of its domestic equity strategies in small and small to mid-capitalization companies. The investment team endeavors to provide returns in excess of their stated benchmarks over a market cycle by discovering opportunity in companies that they believe are trading below their underlying intrinsic value and over time will appreciate to reflect their legitimate worth. For more information please visit our website at www.walthausenco.com or contact Erik Nero (News - Alert), Portfolio Specialist & Director of Client Service at [email protected].
View source version on businesswire.com: https://www.businesswire.com/news/home/20180821005437/en/ |
