Morgan Stanley Shakes the Recruiting Tree But Loses NYC Team
(Updates with UBS hire of a Dayton, Ohio, team from Merrill Lynch in final paragraph.)
J.P. Morgan Securities lured a pair of Morgan Stanley advisors in New York City producing around $3 million on Friday, but the wirehouse licked its wounds by welcoming four teams from UBS and Merrill Lynch generating some $8.8 million in revenue.
The losses centered on the team of Stephen H. Gold, Patrick R. Henry and two client associates, who had worked at Morgan Stanley’s E. 52nd Street office for nine years but jumped to the firm’s founding bank parent in suburban White Plains, N.Y.
The gains came from UBS Financial Services and Merrill Lynch.
A Morgan Stanley spokeswoman confirmed that the company hired the husband-and-wife team of Scott and Tricia Mercalde in Kenwood, Ohio, Kevin Martin and Andrew Archer in Los Angeles, Gregory Chevrier and Walter Grubbs in Newport, Va. and Christian Conroy in Jericho, NY.
The Mercaldes, each of whom have been brokers for 19 years, spent the last 12 at UBS after an earlier stint at Smith Barney, while Martin and Archer completed nine years at the Swiss-owned broker-dealer.
Martin, who spent 21 years of his 30-year career at Merrill Lynch from 1987 to 2009, was overseeing around $400 million in assets for 55 families at UBS, according to his UBS team’s web biography.
Grubbs and Chevrier, who have been registered reps for 18 and 22 years respectively, made the jump to Morgan Stanley after an 8-year shift at Merrill, according to their Broker Check histories. Conroy is a rookie who joined the brokerage industry in 2016 at Merrill’s office in Great Neck, New York.
A Morgan Stanley spokeswoman confirmed the hires and the combined production numbers.
Morgan Stanley, UBS and Merrill have each radically reduced their hiring of experienced brokers in the past two years, and have added compensation incentives and penalties to keep brokers in place. The new hires demonstrate, however, that “we are always in the market for top advisors that are looking to grow their practice,” a Morgan Stanley spokeswoman said.
J.P. Morgan’s hiring of Gold and Henry underscores the large bank’s desire to build the traditional wealth management business it inherited through its parent company’s purchase of Bear Stearns & Co. during the 2008 financial crisis.
J.P. Morgan Securities employs fewer than 500 traditional brokers—compared with almost 16,000 at Morgan Stanley. But it has signaled its intention to grow the business.
In January, it lassoed John Slattery, a multi-million-dollar producer at Morgan Stanley’s Greenwich, Conn. office, to join its nearby White Plains branch. And late last year it aggressively recruited top brokers from UBS and Morgan Stanley brokers in the interregnum between the firms’ announcements that they were leaving the Protocol for Broker Recruiting and the effective date of their exits from the pact.
The J.P. Morgan brokers, like their wirehouse peers, are compensated with a percentage of the fees and commissions they generate, in contrast to the salaried private bankers and trust at J.P. Morgan.
Gold has 20 years of traditional brokerage experience and worked earlier in his career at UBS Financial Services, Bear, Stearns and Sands Brothers & Co. Henry’s 14-year career traces a similar route, originating with Bear, Stearns in 2002, shifting to UBS in 2004 and to Morgan Stanley in 2009, according to his BrokerCheck history.
Spokespeople at J.P. Morgan Securities did not immediately respond to requests for confirmations of Gold and Henry’s moves, and James Dean, the firm’s resident manager in White Plains, declined comment.
Separately on Friday, UBS hired a team of two brokers, Jamie Schade and Mark Henestofel, from Merrill Lynch in Dayton, Ohio, according to a person familiar with the move. The two managed over $500 million in assets for individual and institutional clients, the person said. Schade had been with Merrill for all of his 19-year career while Henestofel had been with Merrill for all but one year of his 16-year career, according to their BrokerCheck histories.