2011 Broker-Dealers of the Year—Slideshow

Division 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.

Division 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.