Chinook Emerging Growth Strategy

Investment Philosophy:
We profitably exploit inefficiencies within the small cap growth universe through our managers' experience, primary research, quantitative techniques and valuation disciplines.

Investment Decision-making Process:
Two complementary growth styles and investment disciplines are utilized: "Core Growth" identifies seasoned growth companies with relatively long track records of strong management, operating excellence and high returns on shareholder capital; "Opportunistic Growth" identifies companies which are likely to have relatively short operating histories, yet are attractive because of embryonic growth opportunities and reasonable valuations.

Sell discipline:
We use a proprietary quantitative price discipline that calculates daily sell limits based on each stock's price volatility relative to that of the market. Our price discipline acts as a risk-avoidance mechanism that prevents significant losses in any position and prevents winning positions from "round-tripping" back to their cost basis while still allowing for substantial gains.

The portfolio is a unique mix of stable, more seasoned growth companies and embryonic companies with explosive growth potential.

Portfolio Construction:
The portfolio is comprised of 35-50 individual holdings. The universe is small cap growth stocks in a market value range of $100 million to $3 billion. Maximum amount of the portfolio that will be invested in one sector is 40%, in one industry 15%, in one security 6% at cost and 8% at current market value.

Portfolio Managers:

Greg Houser, CFA. Greg has 37 years of investment experience and is responsible for overseeing Chinook's equity investment portfolios.

Lantz Stringham, CFA. Lantz has 15 years of investment experience as an equity analyst concentrating on small-cap and micro-cap equity research.

Grant Brown, CFA.  Grant has 11 years of investment experience as an equity analyst with a focus on the technology and healthcare sectors.