Is Rockwood Investment Counsel Right for You?

We are Small Cap investors.  Historically, exposure to the Small Cap space has proven to be an effective asset class toward improving long-term growth of your investment portfolio.

Before investing, here are a few things to consider:

  1. Small Cap stocks tend to be between $200 million and $3.5 billion in market capitalization.  Mid Cap stocks tend to be between $3.5 billion to $15 billion in market capitalization.
  2. Small Cap stocks tend to be volatile.  It is not totally unusual to find a Small Cap stock up or down 10% in a day. Rare, but not unusual.  And, Small Cap stocks tend to underperform Large Cap stocks in market downturns.  However, our portfolio is diversified across most economic sectors and industries.  We are careful not to be concentrated in stocks influenced by the same macro-economic events, despite being in different industries.
  3. Small Cap turnover tends to be higher than in Mid and Large-Cap portfolios.
  4. The Small Cap segment of the market tend to outperform Large Cap stocks in up markets.
  5. We are long term investors typically with a three year time horizon.  We do rigorous analysis of the company and its future growth prospects before investing.  Sometimes, after our initial investment, the stock may decline based on short-term misperceptions.  We are likely to add to the position if we believe our investment thesis remains intact.
  6. We are a small firm.  We anticipate having quarterly discussions with each client to make certain we are meeting expectations and our investment style still is right for you.  If a client would like to discuss anything pertaining to their portfolio during the quarter, we will always do our best to discuss and address your concerns and you may speak directly with the portfolio manager.