SumRidge Partners wants to help the growing number of independent wealth management firms trade faster and access more information when devising strategies for the municipal bond market.
To do so, the independent, Jersey City, N.J.-based broker-dealer on Wednesday introduced Liaison Desk, a new service for wealth managers in the municipal bond industry and other fixed-income markets. The service provides the wealth advisor community with professional sales coverage, strategic market commentary, tactical investment ideas and trading execution for corporate and municipal bonds.
As advisors have migrated from large investment banks to independent shops, they have had to adjust to a smaller information support structure for accessing the broad fixed-income marketplace. SumRidge wants to fill the vacuum, said Tom O’Brien, the firm’s chief executive officer and president.
O’Brien says the firm sees a need in the marketplace among investment advisors. “Liaison Desk helps them put together bond portfolios, provides them with tactical real-time ideas, much in the credit area,” he said. “Portfolio review, portfolio construction, portfolio monitoring … we do many conference calls. We have many independent advisors at large firms we visit with. We’re here to be their point of contact, their point of reference.”
For municipals specifically, SumRidge traders assemble a market commentary in the morning and afternoon that focuses on the market’s open and close, said Kevin Morano, the firm’s chairman. The firm’s traders also concentrate on best execution, he added.
“We have our own inventory,” Morano said. “But we also show the whole Street’s inventory, whether credit, municipals, mortgage or CDs.”
In November 2010, O’Brien and Morano, two former co-heads of Morgan Stanley Smith Barney’s capital markets division, launched SumRidge.
The firm, a principal-based market maker, commits capital and makes markets for wealth management and institutional middle-market clients. It also provides content, ideas, market commentary, liaison-type functionality to the independent wealth management and registered investment advisor community.
SunRidge has 22 employees. The firm’s municipal production group consists of five traders and six sales people. It has been profitable since November 2010, O’Brien said.
The muni business represents about 40% of SumRidge’s overall business.
