2011 Broker-Dealers of the Year—Slideshow

Get to know the winners of the 2011 Broker-Dealers of the Year

Bradley Shepherd, Founders Financial SecuritiesDivision I
Founders Financial Securities LLC

President: Bradley Shepherd
Founded: 1992
Producing Reps: 60
Average annual gross production per rep: $227,000
2010 gross revenue: $10.7 million
Company data self-reported as of April 1, 2011.

On Alternatives: If Markowitz was sitting here today, I think he’d admit that modern portfolio theory is modernized by alternative structures. I think he’d admit that, OK? That being said, the conversation about alternatives is misguided. The conversation should be about risk management, not alternative structures.

The only reason people are considering an alternative structure is because they’re afraid to lose 45% or 57% or whatever percentage again. You don’t have to use alternative structures to create risk management strategies within the construct of the portfolio.

I think our job as broker-dealers and trusted advisors is to create certainty where uncertainty exists. If we’re focused on the planning aspect, I think the relationship with the client changes and the education of the client changes. It becomes a more effective relationship. And now risk management becomes a reasonable and easy conversation to have. Clients then understand and are willing to sacrifice something on the upside to be protected from potential damage.

Read more from the 2011 Broker-Dealers of the Year.

Ralph DeVito, The Investment CenterDivision II
The Investment Center Inc.

President and CEO: Ralph DeVito
Founded: 1986
Producing Reps: 305
Average annual gross production per rep: $143,000
2010 gross revenue: $41.8 million
Company data self-reported as of April 1, 2011.

On Revenue Growth: Last year we grew about 18%. This year we’re up over 30%. It’s probably half-and-half recruiting growth versus internal growth. We’re making a big push to give our advisors more tools and products from a practice management standpoint, which has helped across the board with growth. A lot of the push that we’re getting from the recruiting side is heavily fee-based. It’s been a great few years.

Read more from the 2011 Broker-Dealers of the Year.

Tim Murphy, Investors Capital Corp.Division III
Investors Capital Corp.

President and CEO: Timothy Murphy
Founded: 1992
Producing Reps: 530
Average annual gross production per rep: $158,598
2010 gross revenue: $79.2 million
Company data self-reported as of April 1, 2011.

On Recruiting: Recruiting this year has picked up significantly, but it’s about quality over quantity. All of us are focusing more in that area. Our ideal recruit is somebody you would have over to your house for dinner on multiple occasions. Just as clients have a relationship with the advisor, we also have a relationship with the advisor. We clearly are looking for folks who are productive. We’ll take everybody’s personal situation into consideration, but recruiting is very expensive. Just the transition from one firm to another is expensive and there are firms out there writing significant checks. But we have no plans of being the biggest firm, so I’m not in a recruiting race. We need to grow and we need to continue to recruit. We’ll do so responsibly.

Read more from the 2011 Broker-Dealers of the Year.

Patrick McEvoyDivision IV
Woodbury Financial Services

President and CEO: Patrick McEvoy
Founded: 1910
Producing Reps: 1,550
Average annual gross production per rep: $147,000
2010 gross revenue: $238.7 million
Company data self-reported as of April 1, 2011.

On Regulation: My feeling is that for years we worried about NASD and then the SEC and FINRA. We have so many competing regulators. Everybody is trying to compete for who can regulate us the best. Now we’re into the legislative world with Dodd-Frank and all of the unintended consequences from that. If I hear another politician tell us that we have to pass the bill to understand what’s in it I’m going to go crazy. We used to have a rules-based regulatory environment; now we’re regulation by enforcement.”

Read more from the 2011 Broker-Dealers of the Year.

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