Our investment strategies may invest in the securities of companies that are generally described as "small cap" or "mid cap." This refers to the outstanding value of their securities, and indicates that the company may have fewer financial resources than larger competitors.
Such companies may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, investments in these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Small- and mid-cap stocks, therefore, may be more volatile than those of larger companies. These securities may be traded over-the-counter (OTC) or listed on an exchange.
With that said, these companies may be involved in innovative businesses which provide unusual impact and the prospect for higher returns. We carefully construct our portfolios to balance the risk of investing in these firms with their potential benefits.