Some people just have a knack for growing a business. Denis Kelleher is one of those people.
Twice he has created businesses to capitalize on the American business climate, and twice he has been successful. Educated at St. Brendan’s College, Killarney, and also at St. John’s University, New York, Kelleher (profiled in last year’s Business 100) has had more than 30 years experience, covering virtually all aspects of the securities industry.
Kelleher’s first company was founded as a result of deregulation within the securities industry. At the time he formed one of Wall Street’s first discount brokerage companies. Later with Barclays Bank as his partner, he built Wall Street Clearing Company into a leading independent clearing organization that provides clearing and trade execution services for over 70 brokers and 900 banks.
Kelleher sold the company to Alex Brown & Sons and is now one of its clients.
A few years later, foreseeing brokerage services offered by banks as a major growth area, the Irish American investor formed Wall Street Investor Services, which now provides services to over 450 banks and is one of the fastest growing firms in the industry.
Now comes his third company.
Kelleher sees investment growth of the future happening on an individual basis — he has created a personalized investment service for new or seasoned investors. Wall Street Preferred Money Managers gives individuals the very best opportunity to realize their financial goals. “Today, with so many different types of investors, the focus on the individual must be sharper and clearer than ever before,” says the Kerry-born investor. “You can no longer just bundle clients into one easy-to-service group. No two investors have exactly the same resources, investment personality or financial aspirations.”
His new company offers a way to manage individual accounts of $100,000 or more using the advice of seasoned, professional money managers who until now were only available to accounts handling millions of dollars. The latest service, which took several years of regulatory approvals, is a typically innovative move by Kelleher; the company offers the very best investment resources to individuals, helping them make the most of investment dollars.
Kelleher’s new company and its mission have also attracted another well-known Irish American to his team. As of January 1, Bill McNally, who will be retiring from a decade of work building the American Ireland Fund, and its endowment, will join the firm. “Wall Street Preferred Money Managers appears to be responsive to a need I have heard repeatedly voiced among our high net worth supporters throughout the United States, ” says McNally.
“In these times of changing rules for savings and investing, what investors want most is access to solid advice, good ideas and sound-planning, all in the context of their own particular financial situation, risk tolerance and investing goals. Short, they want the same help that the biggest investors get in trading in the rational and international financial market, which now moves faster and are harder to predict than ever. In this milieu, it is critical to have access to the highest quality advice and information.”
Kelleher confirms the view that the need for wise investment strategies has never been greater. Just consider some of the reasons: the major shift in demographics. Baby Boomers approaching retirement age, people living into their eighties and beyond, with more income needed (for as long as 30 years of retirement); college education costs of $100,000 or more; astronomical long-term healthcare costs. The challenge for many individuals is to find way to build the assets needed to meet those kinds of expenses, with all the tax-advantages possible and without taking undue risks.
“Historically, the answer has been through conservative long-term investing, ” Keller states. “In today’s complex and volatile financial market, however, this approach is more difficult than ever. Success depends on skilled professionals. The very best help- professional investment managers who manage billions of dollars for America’s wealthiest families, largest corporations and biggest university endowments — is not usually available, to the person who doesn’t have at least $ 1 million to invest.” Kelleher affirms enthusiastically. “With Wall Street Preferred Money Managers that expertise is now available at a cost that is compatible with that of a mutual fund.’ Referring to the name of his company, Kelleher claims the right to use the word Preferred because his investment managers have been carefully chosen. Each independent manager is an expert in a specific investment discipline. Each has achieved outstanding performance during a period of ten years or more. Currently the managers invest many billions of dollars on behalf of individuals, corporations, foundations, endowments and multi-employer pension plans. Their client list includes names like Xerox, Colgate Palmolive, International Ladies Garment Workers Union, The New York Times, Bell Telephone Mig Co., Cornell University and Eli Lilly Company. Through Wall Street Preferred Money Managers this expertise is now dedicated to developing customized investments to suit individual needs.
“Our mission is to help individuals build and preserve their wealth by giving them convenient, cost effective access to high quality investment services,” Kelleher states. To create a well-balanced portfolio, the company begins by determining the client’s financial needs and circumstances. Each Preferred Money Manager account is a personal portfolio of individual securities registered in the client’s name. The portfolio is designed by the experienced and professional investment managers to reflect the priorities expressed in a detailed investor profile that takes into consideration the person’s tolerance for risk.
Traditionally, for many small investors, the best place for investment services is most often where they work. And for many companies or institutions, helping employees save for retirement or for future expenses is one of the most valuable benefits offered. Working with leading plan administrators, Kelleher’s group also helps company investors maximize their 401K and other retirement plans by providing mutual funds and investment advisory services, including Wall Street Preferred Money Managers.
A recent survey in a leading industry magazine indicated that over half of employees with company-sponsored plans didn’t even know what their companies offered. Yet the same employees said they wanted more advice and counsel from their employers. Kelleher’s group offers companies education programs to help employees overwhelmed by the weight of investment decisions. “It’s about more than just money,” says Kelleher. “It’s about a person’s future.” Kelleher and his associates plan to make that future financially sound for many individuals.
Editor’s Note: This article was originally published in the October 1992 issue of Irish America. ♦
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