Josh Brown and Barry Ritholtz want rock-star culture and rocketing growth in one RIA so they hired Jay Tini to manage the paradox
The dynamic New York City super-blogger duo now have a $2.8 billion AUM RIA and a 'massive fanbase' to cultivate, but they also foresee a need to rein in and retain
5 min read- Ritholtz Wealth Management hires Jay Tini as president to manage rapid growth.
- Delegation allows Brown and Ritholtz to focus on business development and content.
- Expertise in HR and technology is needed to support Ritholtz's continued expansion.
Josh Brown and Barry Ritholtz grew an RIA to $2.8 billion in AUM in nine years by embodying an enigma – having a Wall Street attitude but an anti-Wall-Street need to put client interests first.
So far, so good. Ritholtz Wealth Management has 53 people on staff, and about half of them are client-facing. See: Mystery solved: Josh Brown and Barry Ritholtz start RIA, or is actually where the intrigue begins
The RIA reported $908 million and 12 staff at this time in 2018, meaning the firm grew 200% in AUM and 400% in staff.
Yet the bigger riddle for Ritholtz's owners is how to keep madly growing while still being themselves as they continue to convert a “massive fan base” into a national RIA.
The answer begins by delegating the firm's day-to-day operations to Jay Tini, who was hired away from Vanguard Group and named president with a pledge to stay in his lane.
“This team does not need me to come in and help them grow the business; they have that well in hand,” said Tini in a release. “My primary goal is to preserve and build upon the identity, fabric and culture of the firm that the partners have built.”
Clearing a threshold
Having Tini to free up Brown and Ritholtz for podcasts, blogs, television appearances and their Future Proof event bodes well for the future, says Eliza DePardo, principal of DePardo Consulting and a Moss Adams alum.
“It's absolutely their highest and best use.” See: Future Proof spent 'millions' and got a 'gazillion permits' in 2022 and the VC-backed 'Reformed Broker's' festivus is on track for 10,000 attendees by 2025
Indeed, Tini's value-add will be organizing and executing day-to-day duties.
“I believe I can add value as an operator, freeing the team to achieve the best possible outcomes for clients and strategically build toward the future,” he says.
Mystery solved: Josh Brown and Barry Ritholtz start RIA -- or is that actually where the intrigue begins
Brown also frames Tini's role, in large part, for what it's not – yet.
“We did not recruit Jay to manage an organization the size that it is,” he says.
Playing catch-up
Hold that thought, says DePardo, who estimates the firm may be nearing or have surpassed the $25 million revenue threshold.
“What's unique about their group is the business development engine. And they've really broken through," she says. See: Reformed Broker RIA makes hire to turn his $825-million-AUM firm into a blog incubator with a not-unneeded feminine touch
“What's not unique is that they've never hired high-level managerial expertise for HR, technology etc. They may be playing catch-up. If anything, they're probably behind in making structural changes.”
Yet the show must go on.
“We're not stopping,” Brown says in an interview.
Story Timeline
He adds by follow-up email that growth should advantage the client: “No client should be excited about an advisor with a stagnant practice.
“The more we grow, the more resources we have to invest in additional talent. Accountants, trust experts, etc., also state-of- the-art technology to power better UX, better data / insights, etc.”
Role model
Nor do Brown's perambulations take time away from clients, he says in response to a reporter's question.
Reformed Broker RIA makes hire to turn his $825-million-AUM firm into a blog incubator with a not-unneeded feminine touch
“I don’t personally oversee individual client accounts and haven’t since 2012. Every client works with a professional financial planner.”
Ritholz investing is “evidence based,” which encompasses scientific thought and investing “factors” often associated with DFA, he says.
Asked whether he might one day like to compete along the lines of Peter Mallouk, he replied that the latter is a hero, but another giant RIA is a role model of sorts.
“[Ric] Edelman, pre-Financial Engines, is a better roadmap,” he says. “Ric is spiritually closer, also with a massive fan base.”
No fickle factor
Brown is certain that Ritholtz will adhere to an organic growth strategy to safeguard fierce independence.
“You're not going to see an M&A strategy, and you're not going to hear that we sold 10% to private equity,” he says. “We never want to get to the point where we have to do something [out of character] to pay the bills.”
RIA owners manage markets and price increases to max out their uncertainty.
“We don't want a third [fickle factor],” he says.
Building trust
Hiring Tini, 43, represents a sort of third party force who will necessarily need to wrest a measure of control from his bosses.
Much of his job is to make sure the next 53 staff the company hires are as good, caring and Ritholtzian in culture as the first 53 – a tall order.
“That's going to take a lot of work,” Tini says.
It'll take a feel for vibe and culture and co-founder Ritholz is confident Tini grasps both because of all the time he has spent around the firm and its staff.
“It takes time to build trust and we’re not an easy group to impress," Ritholtz says, "Jay has been a good friend for a long time. We are a close-knit family doing what we love and enjoying every minute of it. He’ll fit right in.”
Tini lives in Fairfield, Conn. and has 20 years of RIA-related experience, overseeing 70 people related to serving RIAs at Vanguard in addition to time at AllianceBernstein.
He holds an MBA from Drexel University’s LeBow College of Business and a B.S. in Finance from Boston College.
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