This $5 Billion Boston Duo Takes An Endowment Approach With Wealthy Families

Group Identify: Livingstone/Condron Group

Agency: Morgan Stanley
MS
Personal Wealth Administration

Senior Members: Devin Condron, Victor Livingstone

Location: Boston, MA

Group Custodied Property: $5.1 billion

Forbes Rankings: Prime Wealth Administration Groups Personal Wealth, Greatest-In-State Wealth Administration Groups

Background: Each natives of the Boston space, Condron and Livingstone every had buying and selling backgrounds on Wall Avenue earlier than turning into monetary advisors. The 2 individually moved to Morgan Stanley within the early 2000s, progressively attending to know one another whereas constructing their respective companies. They teamed up formally in 2020 after realizing that they’d non-overlapping however complementary expertise—Condron specialised in working with excessive internet value households in areas like property planning, whereas Livingstone had huge expertise working with establishments like endowments and foundations. That twin method from the highest down has shaped the bedrock of their workforce at this time, which now numbers 9 folks in whole and works with purchasers that embrace entrepreneurs in addition to private and non-private firm executives. “We’ve discovered that due to our capital markets experience and expertise managing endowments, this sort of shopper has gravitated to us,” says Livingstone. “We’re each Boston guys with related DNA—it looks like we’ve been working collectively for over a decade.”

Aggressive Edge: Having had a good variety of endowments or foundations as purchasers, which implies working with a variety of funding committees, the workforce has over time utilized this disciplined course of to working with households as properly. “It’s a confirmed course of that works for big swimming pools of cash that households are completely happy to have utilized to them as properly,” says Livingstone.

Funding Philosophy/Technique: The 2 companions cite the workforce’s bottom-up elementary course of that begins with deep discovery to grasp shopper steadiness sheets and danger tolerances. “As soon as we perceive what a shopper is making an attempt to attain, we distill experience from Morgan Stanley right into a product that is smart for every particular person shopper, populated with a few of the world’s greatest asset managers,” says Condron. “On the core, we’re worth guys—our job is to guard the wealth a lot of our purchasers have already created,” provides Livingstone, who remembers finding out Harvard and Yale’s endowments early in his profession. “We actually do take a long run view and imagine within the endowment mannequin, which implies desirous about every asset class and making an attempt to make the most of any mispricing.” Among the best alternatives they at the moment see available in the market is in mounted earnings, the place traders can get equity-like returns in credit score markets: Not solely does it generate a yield at this time however it additionally units up for some enticing returns in just a few years, the companions describe. The workforce are additionally large believers in different investments, which make up wherever between 10% and 30% of shopper portfolios, with their favourite methods at this time together with non-public credit score and personal fairness secondary funds.

Funding Outlook: “The huge transfer in charges has been nothing lower than a sea change over the past three years and can have large ramifications for market valuations,” says Condron. “It’s humorous, we didn’t have yields for thus lengthy and now that we do, purchasers are nonetheless hesitant as a result of they be ok with money, however it’s our job to remind them that over a cycle these charges are enticing and have to be locked in.” The workforce has been targeted on shifting some liquidity into Treasuries and bonds as they attempt to make the most of larger charges, he explains. When it comes to fairness markets, the 2 companions are considerably cautious and level to the slender nature of the present market rally, with only a handful of massive firm shares producing the vast majority of positive aspects this yr. Nonetheless, they continue to be opportunistic about the remainder of the market finally catching up: “While you see these excessive readings, it most likely is smart to make the most of corporations that haven’t participated on this rally,” says Livingstone. “

Largest Problem: Each companions cite the nice monetary disaster as a pivotal studying expertise. “One of many challenges in periods of market volatility for us as advisors is to at all times be sure that purchasers have sufficient liquidity to allow them to journey by the storm,” says Livingstone. “That’s one factor we got here away from 2008 with and actually hold as a part of our funding technique at this time.” Extra typically, one other problem helps purchasers to filter out the noise and keep away from any worry of lacking out in terms of markets. An avid scholar of monetary historical past, Livingstone likes to remind purchasers that when you have a look at previous market cycles, staying the course over the long run at all times pays off.