Investment Philosophy: How We’re Different

We protect your wealth as aggressively as we grow it.

Managing Risk

At Baker Avenue we believe that a dynamic market requires a dynamic strategy that measures and responds to risk, one that attempts to build wealth in low-risk markets and protects it in riskier climates.

Rather than ride the waves of volatility in up and down markets we construct and manage portfolios based on the overall risk and health of the market.

Our results speak for themselves:

• We have significantly outperformed the S&P 500 in both up and down markets based on annualized returns since inception in 2004.
• We have passed the test of the current recession, delivering strong results in the worst financial climate since the Great Depression.
• We’ve proven our ability to effectively manage risk in both bull and bear markets.
• We have increased the assets of the firm every quarter since inception in 2004, including 2008. We seldom lose clients.

Conventional wisdom on Wall Street is to stay fully invested regardless of the overall risk in the market. The philosophy being that all asset classes performance with ultimately return to the mean variance over the long run.

The reality is that it may take decades for the market to recover the losses and work off the excesses of the past. Many investors, particularly those in retirement simply cannot afford to wait that long.

The danger of passive buy-and-hold investing

If you had invested $100 dollars at the beginning of the decade in a typical buy-and-hold strategy, ten years later you would have barely broken even.