Frequently Asked Questions

What is your motivation to perform and build my assets in a prudent manner?

We are not part of a large financial service organization with no personal financial stake in your success. Your investment manager and financial planner are the owners — we have the highest motivation to perform. Also, as a fee-based manager, we benefit directly from the growth of your assets — your success is our success.

What do I get in return for the fee you charge?

Chinook provides a strategic investment management plan for each client, which includes the active management of: 1. Asset class selection (i.e., US core stocks/international stocks, etc.) 2. Asset class exposure 3. Individual stock selection and management 4. Mutual fund selection and management 5. Quarterly tax reports 6. Quality Customer Service 7. A comprehensive financial plan 8. Ongoing access to tax and investment professionals We rely on our experience and specialized investment management expertise to create investment portfolios that are tailor-made according to specific client needs. All in all, we create investment solutions through a broad range of diversification alternatives that would be the equivalent of hiring two or more different money managers.

What would you consider to be your primary strengths and how would they add value to my investment program?

We respect the fact that this is a relationship business. Accordingly, we provide value by first, being good listeners. Through an analysis of your current financial status, prospective financial status and overall goals, we produce a financial plan which becomes the cornerstone for not only investment management, but also issues relating to taxes, estate planning, stock options and many other facets of financial well-being. Then, we add value by formulating an investment program with a strategic allocation to various asset classes. Further, we add value by periodically conducting face-to-face meetings for the purpose of reviewing the interrelationship between goals, changes in financial status and investment performance to determine if any changes are necessary to reach the client's definition of financial success.

What can you tell me about your investment philosophy with respect to managing common stocks?

Chinook invests in companies that have demonstrated records of successfully managing and growing shareholder capital. These superior business economics correspond with high and stable earnings growth. We invest in quality companies that our analysis also shows are reasonably valued stocks — an investing style premised on buying “growth at a reasonable price.”

Will my portfolio be broadly diversified?

At the center or “hub” of your investment portfolio are our “Core Equities” investments comprised of forty high-quality stocks with the following collective characteristics relative to the Standard and Poor's 500: higher returns on equity, higher earnings growth rates and valuations (P/E multiples) which are comparable to the index. These stocks are actively managed by us and are represented by both large cap and mid-cap stocks. Beyond this investment “hub,” we utilize various mutual funds to further broaden diversification and to take advantage of investment expertise that we think will add value. Presently, we have mutual fund exposure to domestic and international stocks, large cap to small cap size classifications, and growth and value styles.

How do you go about picking stocks for your clients?

What we don't do is make knee-jerk reactions to economic data, look to Wall Street for our investment ideas or follow speculative investment fads. We search for stocks which hold a promise for above-average earnings growth: growth that is consistent with or above what investors expect. Furthermore, we primarily invest in companies that promise high relative growth but not hyper growth. There also has to be a reasonable relationship between this growth and what investors are currently paying — valuation. Our investment process focuses on a number of investment factors and influences that we have identified as being crucial to defining winning companies and winning stocks through almost thirty years of experience. Our process is very structured and disciplined — we consistently analyze the same investment criteria to distinguish superior investments, regardless of shifting market sentiment. Our quantitative techniques are applied against the Compustat database (owned by Standard & Poors) which allows us to analyze about 15,000 large cap and mid-cap companies in an effort to create the optimal portfolio.

What would you do with my existing holdings if I signed on as a Chinook client?

We offer our clients a personal and hands-on approach to satisfying their investment needs. Accordingly, we do not take a mechanistic, “one size fits all” approach to managing your assets whereby everything must be sold in order to conform to our portfolio. Accordingly, we collaborate with you to develop a plan for migrating your existing investments to Chinook's portfolio. You may have holdings that have significant, imbedded gains (unrealized capital gains) or which, perhaps, carry an emotional tie by virtue of being an inherited asset or one which you researched and has been quite rewarding. We will transition your account over time in a way that reflects your needs and allows us to effectively demonstrate our investment philosophy and strategies for which you hired us.

I might have questions ranging from issues about realized capital gains, to the mechanics of a withdrawal, to the strategy behind recent transactions. How will I get my questions answered?

Chinook employs a team approach in providing a continuum of services from financial planning, to account set up, investment management, trading, administration and  communication. Each client is assigned an account administrator who is in charge of coordinating all of these activities to assure proper implementation. They also serve as the point of contact for our clients and will make sure that other members of the management team are available to answer specific questions relating to investments, taxes and overall financial strategy. Our responsiveness is part of our unwavering focus on building long-term partnerships with clients.