Capital Guardian growing amid turmoil - Charlotte Business Journal:

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Today, Capital Guardian has seven offices, including new location in Miami, Fort Lauderdale and Fla.; Knoxville, Tenn.; Raleigh; and its firsty office in Charlotte. By the end of the year, that numbere will increase to 12, with openings planned in Hickory, Winston-Salem, and West Palm Beach and Boynton Fla. The number of adviserxs at the firm has jumped to 32 from 10 at the endof 2008. That will likelu increase to 75 by the end of this And that dramatic growth has occurred amid a recessio and a financial crisis that sent companies such as into the How has Capital Guardian pulledit off?
Alan the firm’s chief executive, acknowledges Capitalk Guardian’s expansion seems counterintuitive at a time when the financial-servicesz industry is in turmoil. But withoutt that turmoil and its effect on retaiklbrokerage firms, Capital Guardian couldn’t expand now, he “We’re kind of benefiting from the debaclr going on at all the large bankx and large firms,” Boyer says. The financial crisiw has led to changes in ownership at some ofthe nation’as largest brokerage firms.
— and its “thundering herd” of more than 16,000o financial advisers — was purchased by Wachoviaq Securities, the retail brokerage arm of which hasnearly 15,000 advisers, is becomint Wells Fargo Advisors this part of the bank’s merger with And and are combiningb their brokerage forces, with Morgan paying $2.7 billionh for a 51% stake in the new to be called Morgan Stanleyg Smith Barney. Big brokerage mergers oftej lead toadviser defections. But even beforse those mega mergers, the brand names of the largr brokerageor “wirehouse” firms had been badly tarnishex during the financial meltdown.
As the merger integrations continue, more adviserws will look to leave for smaller regional and independent someanalysts believe. In a research note this Daniel Fannon, an analyst with Jefferied & Co. Inc., wrote that “adviser defections will likelygain steam” going Advisers and their wealthy clients will depart firms such as Morgan Stanley and Merrill Lynch for firms such as Raymonc James, Edward Jones or the growing number of independentt firms. “Given the reputational ‘black eyes’ and intensified regulatort scrutiny these firms aredealing with, we anticipate an acceleraterd shift away from the traditionak power brokerage houses,” Fannon wrote.
For Capita Guardian, that shift means an acceleratefdgrowth plan. The company aims to be a Southeasternn boutiquebrokerage firm. Boyeer says now is the time to bring establishec advisers on board and to open officews in the markets wherethey live. During a single week in the firm opened its first offices outside of Belmont in Knoxville, Orlando, Raleigh and Miami. The new Charlotte officee is in the MoreheadPlace building, wherd the firm will have nine advisers. It likelyh will move its headquarters there this yearfrom Belmont.