Active Long/Short

Sub-Advised by Great Gable Partners, LP

Strategy Description

Baker Avenue's Active Long/Short strategy is designed to offer exposure to the historically well performing small cap sector with less risk and volatility than standard "buy-and-hold" small cap investment strategies. The Active Long/Short engages in classic value investing to select a portfolio of small cap value stocks. The strategy’s portfolio team typically meets with the CEO and/or CFO of prospective investments, as well as competitors and customers, to better understand the value and prospects of the business. The strategy's managers utilize inverse securities to tactically adjust the portfolio's market exposure. When the perceived risks are exceptionally high, the portfolio may have more inverse exposure than long exposure, positioning the strategy to potentially profit in a negative market.

The Active Long/Short invests in value stocks from small companies with market capitalizations typically less than $5 billion—a frequently overlooked segment. Such small stocks have historically outperformed large cap stocks, and we believe this will continue in the long run.

Suitability: Due to a performance fee being charged on this strategy, an individual must have a net worth, or joint net worth with his or her spouse, at the time of purchase in excess of $1.5 million.

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