“Once upon a time, the center of the universe was actually the floor of the New York Stock Exchange,” says George Ball. Given his lengthy, varied career, the chairman of Houston-based investment firm Sanders Morris Harris should know.
Having started out as a summertime clerk on the exchange floor, Ball’s career saw him rise as a Navy officer and then pivot into the financial services industry. But he believes New York and its famous exchange are no longer the sole financial hubs of the world – nor are they necessarily the most trusted.
Sanders Morris Harris has succeeded by doing things differently than other firms. Having helped build Sanders Morris Harris into a dually registered broker-dealer and RIA worth almost $1 billion, Ball says it all comes down to trust and accountability.
“While we do many of the same things, we added a model that we’ve lived by – which is an investment ‘in common.’ We tell our clients that, wherever it was suitable, we would own the same instruments, the same things as they did – same terms, conditions, and prices, same charges and fees, and nothing different. Plus, if we personally lost a dollar, that would probably be five or 10 times what any of our clients lost.”
However, this isn’t something that can be done ubiquitously; as Ball explains, advisors need to find a differentiator that inspires confidence in their client base.
“The challenge today is different from what it was many years ago when I started in the business,” he says. “But it’s also the same. Can you offer a client something better, something more distinct from what everyone else is offering? We’ve been through a decade where we’ll offer you an optimized, diversified portfolio that’s rebalanced – and that’s a departure from what was done 20 years ago. Now it’s just commonplace.”
Ball also shares insights into the regulatory landscape, drawing from his experience as a former governor of the American Stock Exchange. He recalls a time when regulation and oversight were primarily conducted by industry insiders, which fostered a sense of moral responsibility and ethical behavior. However, this dynamic has evolved into a tension between the regulators and the regulated, with regulation often being rule-based rather than principle-based.
“I think that there should be a much greater embracing of regulation by principle rather than by rule,” Ball suggests. “There’s lip service that’s been given to regulation by principle, but I think most advisors would say that the oversight is largely rule-based rather than being judgmentally founded. And I think that that hurts investors even more than it hurts advisors.”
Pew survey reveals slight majority consensus on tax rates, but views splinter based on political alignment and income levels.
While the Federal Reserve's decision to hold interest rates steady in March was widely expected, it's the reactions from financial professionals that provide a more nuanced picture of the central bank's approach.
The pioneering member of Canada's Maple Eight is stepping back from its go-it-alone private equity approach as a drought in deals and Trump's trade war prompt a rethink.
The firms' latest additions in Florida and Nevada come as a strategic change at UBS raises risk of advisor defections.
The new program offers opportunities and events structured for rookies, next-gen advisor leaders, and soon-to-exit veterans.
In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'
Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies