No. 26: Paul Vasady-Kovacs
AUM: $683 million
Location: New York
Note: This profile is part of a special series devoted to On Wall Streets Top 40 Under 40 ranking for 2012. Every day we take a look at an advisor who made the list to find out the secrets of their success.
Paul Vasady-Kovacss interest in the stock market began in college, but back then he thought it was just a hobby. I never planned to work on Wall Street, he says, but received an opportunity to work at a regional firm and I took to it.
According to Vasady-Kovacs, the job blended some things he enjoyed. I liked the analysis and the attention to detail, Vasady-Kovacs says. I also liked the relationship part of the business. I dont like to let people down, and I was glad to see people happy with my work.
Working as a financial advisor also provided him with a sense of independence. In some ways I could view myself as a business owner, Vasady-Kovacs says, I didnt have to take on clients if I felt they wouldnt fit with what I want to [do].
Vasady-Kovacs often leans heavily on fixed income, which he takes from his regional firm experience. I worked in a division that specialized in income investing. Thats my background and thats still where I tend to focus, Vasady-Kovacs says. This emphasis helps to differentiate me from other financial advisors.
Vasady-Kovacs says that his team manages clients money, rather than farm it out to others. We are strong believers that one-size-fits-all in not the right way to advise investors, he says. We tailor each portfolio for each client, rather than buy into a particular model.
That said, he often tailors clients portfolios with an eye towards generating steady cash flow. We want clients to harness the power of compounding, Vasady-Kovacs says.
A self-described bond guy at heart, Vasady-Kovacs is quick to point out that he includes a wide variety of income-generating vehicles in clients holdings. We consider all types of bonds, from high-yields and mortgages to foreign bonds, he says.
In addition, his clients may hold other investments that produce income, such as dividend-paying stocks, MLPs, convertibles, preferreds, and REITs, among others. Vasady-Kovacs says he aims to provide clients with consistent and reasonable returns, using cash flow to generate a reliable source of growth, regardless of market direction.