100 straight quarters of profits!
With headquarters 1,200 miles from Wall Street, the St. Petersburg, Florida-based company produced the best risk- adjusted return of nine U.S. brokerages, banks and advisory firms since 2009, the BLOOMBERG RISKLESS RETURN RANKING shows. JPMorgan Chase ranked third as Bank of America, Goldman Sachs and Morgan Stanley were among the worst performers.
Investors compare Raymond James, which has a business model that’s easy to grasp and shields the balance sheet from risk, to an asset manager as it mainly relies on fees. Unlike larger rivals, the brokerage gets most of its sales managing investor money, earning 64% of annual revenue in the last fiscal year from its private-client group. That gave Raymond James the stability to weather a financial crisis that caused larger banks to write off billions of dollars in loans.
'You threw everything but the kitchen sink at the financial-services industry and this company sailed through rather successfully', said Dan Veru, chief investment officer at Palisade Capital Management LLC, which owns Raymond James shares and manages $3.8bn. 'That largeness that used to be an advantage, I don’t think it’s such an advantage anymore'.
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