How a B-D with its own RIA -- and a strict door policy -- went from $1 billion to $2 billion AUM in a year

JHS Capital Advisors has more than doubled in size in the last year: it now has $2 billion in client assets, up from less than a billion in assets a year ago, quietly building its name as a broker-dealer operating its own corporate RIA.

The Tampa-based firm just landed Young, Stovall & Co. of Miami with $300 million in client assets and 10 advisors. The firm had operated its own independent broker-dealer and decided to close down its IBD and operate under JHS. Some advisors with JHS operate as independent advisors in a hybrid capacity and others as commission or transactional employees. The firm was founded in 2009 by John H. Sykes and is a subsidiary of JHS Capital Holdings. It has 94 advisors and 28 offices, mostly in Florida and in sections of the Northeast and Southeast.

Expanding throughout the United States in the next year is clearly a focus, but not at breakneck speed, says Eileen Canady, vice president of strategic development.

“We’re slow and steady,” she says. “We’re very particular about who we ask to join us. We’re not trying to be the fastest-growing firm by any means. We’re looking for the right advisors and the right partnerships.”

Losing the B-D half

Young, Stovall, founded in1979 by Roark (Rocky) Young and Helen (Stovall) Bueno clearly fit the bill. The two started the firm at a time when few independent brokerage firms existed in Miami, offering an alternative to large brokerage firms that then dominated the market.

Bringing Young and Bueno aboard helps JHS establish a larger presence and gives it more dedicated advisors to add to its roster, says Frank McPartland, chief operating officer at JHS Capital Advisors.

“Rocky and Helen’s principles and expertise align with our efforts to provide clients with the highest quality of service,” McPartland says. “Our commitment to providing objective advice is the cornerstone of building long-term client relationships that help investors in aiming to meet their financial goals.”

Young, Stovall already used RBC Advisor Services as its custodian and the fact that JHS also uses RBC makes the transition easier, says Canady. See: RBC’s appearance on custody scene could be a 'game changer’.

Two-way interview

JHS is picky about who it accepts, Canady says, pointing out that a firm’s ideals and philosophy — particularly issues pertaining to integrity, transparency and full disclosure — are of utmost importance. JHS has a code of ethics that is listed on its website. Before signing on, all potential advisors must pass muster with a hiring committee after they’ve met with individuals from recruiting, business development and the firm’s managing director.

Al Schofield: We are excited to
join a firm that truly lives
its principles of putting ethics and
client service at the center of
its offering.

“When a recruit comes in, it’s a two-way interview,” she says. “One of our managing directors always says that this is an invitation only-organization. People are starting to see and understand.”

Code of ethics

“Our clients always come first,” Canady says. “We want people who are always looking for the best for their clients and are living their life with integrity and ethics.”

The company emphasizes philanthropy but advisors aren’t required to donate or volunteer to any organizations.

The ethical emphasis was attractive to a team of wealth managers based in Osterville, Mass. who signed on with JHS in November. The team was previously with RBC Wealth Management and has about $250 million in assets.

“We are excited to join a firm that truly lives its principles of putting ethics and client service at the center of its offering and provides the tools and resources advisors need to deliver outstanding service,” says Alfred Schofield, branch director, who leads the Osterville team.

It’s also important to Young.

“We look forward to a lasting partnership with JHS, built on shared ideals and a commitment to always putting the clients’ interests first,” he says.