An early boutique, Johnston Asset Management was founded by Richard Johnston in 1985, and currently has $1.4 billion in assets under management, Hardman says.

Unlike some others who have made the jump from large to small, Hardman was unable to retain her former clients. This was due to a non-compete agreement she had with her former employer, PCM International, a subsidiary of what was then The Prudential Insurance Company of America, now Prudential Financial.

"The major risk in working for a small firm is that revenue, which is fee based, can be volatile depending on the performance of the market," she says. "Also, we have fewer product lines and if there is a performance issue with one of them, it will have a much bigger impact on the firm.''