Breakaway Wealth Firm With Sports DNA

Tom Burroughes

25 February 2022

A term that has become more common in the North American wealth sector in recent years is “breakaway” – referring to advisors leaving big banks and wirehouses to set up on their own, often as registered investment advisors. A large part of this desire is to be one’s own boss and deliver the independent advice that clients increasingly want.

Anthony David , an advisor who spent 20 years in the wirehouse channel, has joined Concurrent Advisors and the Raymond James RIA platform. With an Asian-American heritage and a 20-year career at Morgan Stanley, David wanted to take the plunge, creating a firm called Adalan Private Wealth. It is based in Virginia.

“I think I am in the same shoes that entrepreneurs have…it gives me a more rounded view of wealth management,” David told FWR in a call. “This is a comprehensive wealth management firm. I felt like going into the independent route, accessing third-party resources and research opened up options that I didn’t have.”

“It is drastically different to have everything set up for you. I try to improve on the shortcomings that practitioners face. I am trying to make more efficient use of my time,” he continued.

The firm with which David’s firm works – Concurrent – is carving out a niche in the Office of Supervisory Jurisdiction world. Concurrent itself has grown to having $13 billion in assets held by affiliated advisors, more than double the amount in 2019.

The Adalan business also has a bit of a swerve – many of those working in it are connected to sports in various ways, such as NFL and baseball. “My team from Morgan Stanley has come with me,” he said. Among the team members is ex-NFL player Spencer Long ; Roderick Cartwright, also a member of the Washington Football Team, and the Las Vegas Raiders, Iván “Pudge” Rodríguez, a former Major League Baseball catcher, and Catalina Villegas, who was a professional tennis player.

David, who is 42, said that at his age he can talk to younger clients as well as the older ones. “This is about handling your money in a serious way. I always emphasize that I am there to explain things and give them my expertise. I am their employee,” he said.

Just over a year ago, the financial markets were roiled by the frenzy of share trading US companies such as GameStop, the computer games retailer, cinema chain AMC and the silver market. Social media platforms such as Reddit gave traders an opportunity to launch co-ordinated moves, riling regulators and more established players. FWR asked David about this episode and he argued that it was more akin to speculation than investment. “My concern has always been that these episodes can lead to an overall distrust of the market,” David said.

Fast forward to 2021, and inflation pressures are rising, prompting central banks to start tightening monetary policy and changing some of the assumptions on which asset allocators have relied for a decade. David cautioned against investors sitting on the sidelines.

People who have most reason to be concerned about inflation being more than a temporary phase are those who are sitting on piles of cash. “I often remind them, historically speaking, it makes sense to be in riskier assets but in a diversified way. If inflation is stubborn you have to look at equities, and other assets. People cannot just sit on their hands,” he said. “What I do is bring discipline to the table.”

The sector has seen a rapid acceleration in the use of digital technology and two-way video enabling advisors to talk to clients more easily. While useful, Zoom conversations over a screen weren’t a full substitute David said.