The Northwest Smaller Companies portfolio is appropriate for clients looking to add exposure to a faster growth segment of the overall stock market. Often, smaller companies can provide a higher risk/higher reward for the investor. Our research process seeks to uncover "hidden gems" – small stocks that are not well followed or understood by most investors. We generally counsel investors that some exposure to this market sector is appropriate as part of an overall investment plan, but should not constitute a majority of the wealth. Our benchmarks in this portfolio are the Russell 2000 and the Russell Mid-Cap. Our objective is to outperform both.

Investment Strategy: The Smaller Companies portfolio invests in approximately 35-40 growth companies which we analyze from a bottom-up perspective using a disciplined analytical and valuation methodology. Our target holding period is at least five years, selling when the fundamentals of the business change, a company becomes intrinsically overvalued, or a more compelling investment alternative arises. Our approach seeks to provide capital appreciation through investment in growing companies in a combination of new and established sectors of the economy.