Firm History and Investment Philosophy

Firm History

In 2001, Lauren Templeton founded Templeton Capital Management, LLC, a value investing boutique based in Atlanta GA. Beginning with $30M in seed capital from investment legend Sir John Templeton, the firm launched managing a group of long/short equity and concentrated long-only equity strategies on behalf of Sir John and his philanthropies. In 2007, the firm relocated to Chattanooga, TN, and also began managing long-only separately managed accounts for high-net-worth individuals and institutions outside of the Templeton philanthropies. Applying the same strategies and methods learned under the mentorship of Sir John, the firm added global and international strategies for concentrated long-only portfolios. In 2014, portfolio manager Scott Phillips became a principal with the firm, known today as Templeton and Phillips Capital Management, LLC. Throughout its growth and over the years, the firm continues to serve high net worth individuals and institutions through the management of separate accounts, investment consulting, and its role as the manager of the Templeton and Phillips Partners Fund, LLC.

Investment Philosophy

FOCUS ON VALUE. We employ John Templeton’s lessons in bargain hunting which begin with a rational, numbers-driven approach. The firm utilizes quantitative screening focused on measures of bottom-up valuation and fundamentals to identify potential bargains. Statistical anomalies become candidates submitted to fundamental analysis and a calculation of intrinsic value to determine whether the stock is a bargain.

CONTRARIAN BEHAVIOR IS KEY. The most successful investments we have made were the result of buying companies whose shares fell temporarily out of favor. The only way a stock can become a bargain is when its share price becomes depressed due to a lack of buyers.

TROUBLE IS OPPORTUNITY. In our experience, the best bargains appear during periods of panic and pessimism. Bargains can surface in individual companies, entire industries, whole countries, and in the best scenario during widespread global market declines. During times of “maximum pessimism,” even high-quality growth firms can be purchased at a bargain.