Investment Approach

Mengis Capital offers professional management of clients' assets. We provide discretionary portfolio management for individuals, retirement funds, corporations, trusts and endowments. Our firm may also serve as a subadviser to other advisory firms in managing their clients' assets.

We specialize in fundamentally driven management of equity and income portfolios. In our management process we strive to achieve tax-efficiency for our clients through long-term capital gains and offsetting losses. When appropriate, we use exchange traded funds (ETFs) and mutual funds to diversify portfolios.

Individual Equities. We seek out and invest in companies with strong quantitative and qualitative characteristics which, in our judgment, offer value and long-term performance potential to their shareholders. Taking into account relevant market conditions, we build equity portfolios one company at a time. Our client's equity portfolios are highly customized, and the number of positions in each portfolio will vary for each client. Sector weights in an equity portfolio are determined by the underlying relative value of the companies within each sector.

Income Portfolios. After assessing each client's income needs and risk tolerance, we assemble a customized income portfolio with core positions in either government, municipal, or corporate securities. When appropriate, we use positions in specific asset classes that complement and diversify our holdings, such as preferred stock, high-yield bonds, global income, Treasury Inflation-Protected Securities, real estate investment trusts ("REITs") and alternative investments.

Mutual Funds. Where suitable, we invest a portion of your assets in ETFs, and/or open- or closed-end mutual funds to access additional asset classes. We believe that mutual funds play an important role in portfolio composition. Mutual funds can provide diversification and focused research analysis in areas such as small capitalization, mid-capitalization, emerging and foreign markets, high-yield, real estate and socially responsible strategies. In evaluating funds for our clients, we focus on expenses, peer performance and benchmarks, performance in different market cycles, manager turnover, risk characteristics and tax efficiencies. We have access to management tools that aid in identifying portfolio diversification. These reports break down individual holdings, allowing us to analyze each fund's composition.

Tailoring To Clients' Needs

We tailor portfolios to meet individual needs of our clients. During the client intake process, we inquire into their financial circumstances and determine their investment objectives, risk tolerance, investment time horizons and any restrictions they state with regard to securities purchased for their accounts. In addition, after our initial meeting with each new client, we develop an Investment Policy Statement for that client. We review each client's Investment Policy Statement at least annually. Our clients bear the responsibility of keeping us informed of any subsequent changes so we can continuously manage their assets in the manner suitable to their needs and objectives.

Although we generally have a broad discretionary authority over client assets, clients may impose restrictions on investing in certain securities or types of securities in the Investment Policy Statement or through any formal or informal communication to us. In those cases, we exercise our discretionary authority consistently with the clients' instructions.

Mengis Capital Management, Inc.
(503) 916-0776 | This email address is being protected from spambots. You need JavaScript enabled to view it.