Andrew W. Cumming

Provides secure criminal identification & authentication hardware and software solutions

Functions as a College/University

SD Baker & Associates invests in North American listed stocks, bonds, ADRs and trusts. The primary investment goal of the company is to find high-quality, publicly traded businesses or assets that are trading at large discounts to their estimated fair value. SD Baker employs balanced and absolute return portfolio strategies. The firm's multi-dimensional risk management strategy is a fundamental component of their investment approach. They execute this strategy through short selling strategies, a flexible mandate, proprietary software, currency exposure and an equity risk premium strategy. Short selling is utilized to offset company specific, sector and commodity price risks in the portfolio. SD Baker's mandate allows them to move equity investments to cash or bonds to preserve capital during bear markets. The firm's proprietary software simultaneously identifies short-term fluctuations in sectors and asset classes and is used to reduce month-over-month volatility. SD Baker actively manages the Canadian/USD foreign exchange exposure to reduce currency risk in the portfolio. Market exposure varies throughout a market cycle; adjustments to net exposure are primarily driven by changes in the equity risk premium. SD Baker avoids speculative investments and concentrates investments on a small number of strong business franchises that serve a pivotal and growing role in their respective industries. The firm looks for companies with strong barriers to entry in a growing industry. Typical barriers include brand names, economies to scale, superior technology and engineering and regulatory protection. They attempt to purchase assets at large discounts to fair value and then hold the investments, often for 2-3 years or more.