Baker Avenue Asset Management, LP, a Delaware partnership also doing business as
BakerAvenue, is an SEC-registered investment advisor founded in 2004. The principal owner
of BakerAvenue is Simon Baker.
As of December 31, 2022, BakerAvenue managed a total of $1.85 billion on a discretionary
basis and $47 million on a non-discretionary basis for a total of $1.9 billion.
The following paragraphs describe our services and fees. Refer to the description of each
investment advisory service listed below for information on how we tailor our advisory
services to your individual needs. As used in this brochure, the words "we," "our," and "us"
refer to BakerAvenue and the words "you," "your," and "Client" refer to you as either a client
or prospective client of our firm.
Portfolio Management Services
BakerAvenue provides portfolio management services to our Clients. BakerAvenue generally
provides services on an investment discretionary basis and for certain Clients (and when
requested, only) on a non-discretionary basis.
If you participate in our discretionary portfolio management services, we require you to grant
us discretionary authority to manage your account. Subject to a grant of discretionary
authorization, we have the authority and responsibility to formulate investment strategies
on your behalf. Discretionary authorization will allow us to determine the specific securities,
and the amount of securities, to be purchased or sold for your account without obtaining your
approval prior to each transaction. We will also have discretion over the broker or dealer to
be used for securities transactions in your account. Discretionary authority is typically
granted by the investment advisory agreement you sign with our firm, a power of attorney,
or trading authorization forms.
Clients may limit BakerAvenue’s discretionary authority (for example, limiting the types of
securities, sectors or industries, or concentrations in any sector or industry, that can be
purchased or sold for your account) by providing our firm with your restrictions and
guidelines in writing. However, BakerAvenue reserves the right to reject or not engage a
Client or terminate an agreement with a Client, if determined the investment restrictions the
Client intends to impose prohibit BakerAvenue from delivering its services as defined in the
IMA with the Client.
For non-discretionary Clients, BakerAvenue will require all necessary contact information to
obtain consent / approval for any transaction BakerAvenue may recommend for purchase or
sale. If BakerAvenue cannot reach a Client on a non-discretionary basis to obtain specific
consent it will not place any transactions with such Client’s custodian / broker or dealer. You
have an unrestricted right to decline to implement any advice provided by our firm on a non-
discretionary basis.
BakerAvenue’s advisory services are based upon each Client’s unique facts and
circumstances as they regard to general investing or, for certain investment products, their
suitability will be matched to the particular product or strategy.
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Services include the following and each is described in more detail in Item 8:
• Dynamic Core Strategy
• Blue Chip Strategy
• Fixed Income Strategy
• Impact Strategy
• Global Income Strategy
• All Cap Growth
• Concentrated Stock Management
• Alternative Investments/Private Investments
• Tax Planning
• Estate Planning
• Risk Management
• Retirement Planning
• Philanthropy & Impact
• Tax Preparation (for Clients over $5 million in investable assets)
• Family Office Services
Fiduciary Status for Retirement Plan Accounts
BakerAvenue is a fiduciary within the meaning of Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) with respect to investment management services
and investment advice provided to ERISA plan clients, including ERISA plan participants.
BakerAvenue is also a fiduciary under section 4975 of the Internal Revenue Code (the “IRC”)
with respect to investment management services and investment advice provided to
individual retirement accounts (“IRAs”), ERISA plans, and ERISA plan participants
(collectively, “Retirement
Account Clients”). As such, BakerAvenue is subject to specific
duties and obligations under ERISA and the IRC that include, among other things, prohibited
transaction rules which are intended to prohibit fiduciaries from acting on conflicts of
interest. When a fiduciary gives advice in which it has a conflict of interest, the fiduciary must
either avoid or eliminate the conflict or rely upon a prohibited transaction exemption (a
“PTE”).
Services Provided to Introduced Clients of Third-Party Firms
In some cases, Clients may be introduced to BakerAvenue from third-party managers through
a single or dual contract relationship. Single contract Clients are Clients who have one
contract with the third-party manager that allows the manager to hire BakerAvenue without
a separate contract. Dual contract Clients are Clients who have a contract with the third-party
manager and a separate contract with BakerAvenue. The investment styles provided to these
Clients are similar to those described above, depending on the relationship with the Client
and the third-party manager. The accounts are managed on a discretionary basis, either
under a single contract with the third-party manager or separate contract with BakerAvenue.
Clients Introduced to Third-Party Managers by BakerAvenue
On occasion, BakerAvenue refers Clients to selected third-party managers as part of their
asset allocation and investment strategy. Some of the factors considered into referring a
third-party manager include: BakerAvenue’s preference for a particular third-party
manager, the Client’s risk tolerance, goals, and objectives, as well as investment experience,
and the amount of Client assets available for investment. The strategies used by these
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managers are outside of the scope of BakerAvenue’s traditional product suite and Clients are
not required to use the services of the recommended third-party managers.
Wealth and Financial Planning and Consulting Services (Stand-alone)
In some cases, BakerAvenue may offer stand-alone Wealth and Financial Planning Services
to Clients who have not engaged BakerAvenue for Portfolio Management services or meet the
minimum assets requirement. Wealth and Financial Planning services may include:
• Family Continuity
• Estate Planning and Trustee Oversight
• Integrated Tax and Financial Planning
• Lifestyle Management
• Family Philanthropy
• Risk Management
To the extent requested by the Client, BakerAvenue may provide financial planning and/or
consulting services (including investment and non-investment related matters, including
estate planning, insurance planning, etc.) on a stand-alone separate fee basis. BakerAvenue’s
planning and consulting fees are negotiable, but generally range from $2,000 to $10,000 on a
fixed fee basis, and from $225 to $300 on an hourly rate basis, depending upon the level and
scope of the service(s) required and the professional(s) rendering the service(s). Prior to
engaging BakerAvenue to provide planning or consulting services, Clients are generally
required to enter into a Financial Planning and Consulting Agreement with BakerAvenue
setting forth the terms and conditions of the engagement (including termination), describing
the scope of the services to be provided, and the portion of the fee that is due from the Client
prior to BakerAvenue commencing services. If requested by the Client, BakerAvenue may
recommend the services of other professionals for implementation purposes. The Client is
under no obligation to engage the services of any such recommended professional. The Client
retains absolute discretion over all such implementation decisions and is free to accept or
reject any recommendation from BakerAvenue.
Types of Investments
BakerAvenue offers advice on equity securities, corporate debt securities (other than
commercial paper), municipal securities, United States government securities, options
contracts on securities, alternative investments and ETFs.
Additionally, we may advise you on various types of investments based on your stated goals
and objectives. We may also provide advice on any type of investment held in your portfolio
at the inception of our advisory relationship.