| Richard A. Barone | |
|---|---|
| Born | Richard A. Barone March 10, 1942 Cleveland, Ohio, U.S. |
| Nationality | U.S. Citizen |
| Alma mater | Georgetown University |
| Occupation | Chairman of The Ancora Group, Investor |
| Signature | |
Richard A. Barone (born March 10, 1942 in Cleveland, Ohio) is an American stock investor, investment advisor, financial analyst and mutual fund manager. After working for a regional broker/dealer in Cleveland, Ohio, he founded Maxus Investment Group in 1973, which he sold to Fifth Third Bank in 2001. He is currently the Chairman of The Ancora Group, an investment company with Broker-dealer and Investment advisory subsidiaries.
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In 1992, Maxus purchased Daley & Company, a small Cleveland investment firm from Wedbush Securities.[1] Daley was a discount broker/dealer, which was losing money in its effort to compete with the likes of Charles Schwab and Scottrade. The acquisition of Daley produced immediate profits, however, as Barone's Maxus Investment Group closed the Daley offices and substantially reduced its overhead by moving the entire operation to a single individual on the Maxus trading desk.
Maxus was able to expand assets under management with the purchase of Gelfand Partners.[2] The acquisition doubled the size of assets under management and diversified the product offerings to include fixed income. The combined companies would have $2.0 billion in assets under management.[3] Terrence Johnson of The Cleveland Plain Dealer called Barone "a self-described dreamer that has single-handedly turned a three-man operation...into one of the biggest players in Cleveland's money management sector."[4]
Barone sold Maxus to Fifth Third Bank. In 2000, Fifth Third was looking to acquire a value manager as well as to reorganize its asset management operation. In January, 2001 Fifth Third completed its acquisition of The Maxus Group from Barone. The merger came at a time when banking reform law allowed banks, brokerages, and insurance companies greater freedom to merge. According to Barone, the purchase of his company by Fifth Third was necessary to compete in the current climate. "With what's going on in the industry today, we thought we needed to team up with a premier institution to be able to offer our clients a greater product line and services." [5]
Barone is currently Chairman of the Executive Committee and Chairman of the Board of The Ancora Group which he founded in 2001. Ancora manages private wealth, institutional funds, and the Ancora Family of Mutual Funds. He continues to manage a variety of investment strategies and address audiences on a number of topics.
Barone's investment philosophy that has been developed over the last 40 years is based on value investing. Utlimately, it is about what a company is worth in a private transaction, according to Barone. There are several areas of value that Barone believes are important in an investment transaction. They include branded products, pricing power, and hard asset value.[6] In addition to looking at these areas of value, Barone believes the use of EBITDA analysis is important to understanding what a company would look like in a private transaction. According to Barone, volatility and uncertainty are good for investment opportunities, not a detriment. "When we see prices drop, that just means we're buying businesses at even less." [6]
In 2002, Barone joined the Board of the Cleveland State University Foundation. The Foundation works closely with Cleveland State's Office of University Advancement on fund raising projects.[7] In 2008, Barone became Chairman of the Cleveland State University Foundation.[8] In that same year, Barone became a community member of the Cleveland State University Board of Trustees.
In 2007, Barone was elected to the Board of Directors of The Stephan Company, a manufacturer and distributor of haircare and skincare products.
In January 2008, Barone was elected to the Board of Directors of The Brentwood Foundation. The Brentwood Foundation, now part of the Cleveland Clinic Health Organization, was established in 1994 as a charitable trust dedicated to the promotion and advancement of medical education, clinical research, and community initiatives that impact health and wellness in the field of osteopathic medicine.[9]
In the Fall of 2008, Barone was elected to the Board of Directors for the Hospice of the Western Reserve.[10] He began serving his tenure in January, 2009. Prior to being elected to the Board of Directors, Barone provided both financial and investment consulting services to the organization, which provides hospice services throughout Northeast Ohio.
On March 31, 2009, Barone was elected to the Board of Directors of Mace Security International. Mace Security International offers personal defense sprays, home and business surveillance and security, automotive security and child safety and security. Dennis Raefield, CEO and President of Mace, said "we are excited to have Mr. Barone as a member of the Mace Board as he was elected by a unanimous vote. Mace is currently executing an aggressive turnaround strategy and we welcome Mr. Barone's guidance during this time as we strive to increase sales." [11]
He lives in Sarasota, Florida with additional residences in New York City and Cleveland, Ohio.