Why should I consider a Small Cap allocation to my investment portfolio?
Answer: Small Caps tend to outperform larger company investments over the long-term.
Are Small Cap stocks risky?
Answer: They can be. However, we consistently invest in profitable companies, who are leaders in their niche markets, trading below what we believe is fair value yet have improving fundamentals with opportunities for continued success.
Why should I consider a Mid-Cap allocation to my investment portfolio?
Answer: There have been recent studies demonstrating Mid-Caps tend to outperform Large Cap stocks with lower volatility. Though, we would not suggest you invest on the basis of those studies. Like for Small Cap, our Mid-Cap focus is on niche leaders with strong and improving financials that yet trade below true value. We believe many of the companies we invest in will someday be the Large Cap leaders in their industries.
Isn’t investing with a large investment company safer and better than investing with a small company?
Answer: No. The largest companies tend to generate market-like returns. Not bad, but we believe you should get above market returns over the long-run for the annual fee you pay. We don’t have investment banking relationships or research obligations. Additionally, if you, as a client, have a concern about your account or a particular investment, you can talk directly with the Portfolio Manager. Typically, that level of access is reserved only for the very largest institutional investors.
Are your fees negotiable?
Answer: Yes. And we have break-points for how much you have invested with us.
Are your returns better than your larger competitors because you are small and can buy illiquid stocks?
Answer: No. Rockwood portfolios are designed for institutional level investors. The average investment trades anywhere from a few hundred thousand shares a day to a few million. Occasionally, in special situations we have invested in a small cap company having one hundred thousand shares daily average volume. We have never invested in an IPO, an index fund, derivatives or options. We are, and always have been, a traditional long term investor.
Why is it you have been successful at outperforming the major Wall Street firms with multiple portfolio managers and armies of analysts?
Answer: Sound Judgment. Or at least we like to believe that it is what sets us apart. Sound, unclouded judgment supported by being separate from the noise of Wall Street and the group think of the hedge fund world.