As a managing director and senior portfolio manager at Brown Capital Management Inc. (No. 6 on the BE ASSET MANAGERS list with $2.7 million in assets under management), Calvin H. Baker is part of the team that leads the firm’s large- and mid-cap mutual funds, including the Brown Capital Management Mid-Cap fund (BCMVX).
A former energy company CFO and treasurer, Baker believes that energy prices will continue to trend upward over the next three to four years, leading to opportunities for investors. Last year, there were a record number of mergers in the oil industry4485 deals worth $82 billion. “I don’t think there will be as many mergers as last year, but the trend will continue,” says Baker. While he believes that some of the larger companies, such as Baker Hughes Inc., may be involved in merger activity, investors should also look at smaller companies, such as Cameron International Corp., a parts manufacturer for the oil giants. Baker says that such companies can be smart acquisitions for larger companies, some of which are themselves positioned to grow through acquisition.