Jeff Assaf - Protecting Clients and Assets at ICG (EP.398)

Beginnings

Jeff Assaf's journey into the investment world began with a pivotal conversation with a fraternity brother who was thriving as a broker. This encounter led him to explore opportunities at various firms, ultimately landing a position at Oppenheimer as an assistant to a senior broker 1. His early career was marked by a shift from transactional work to building relationships with money managers, which laid the foundation for his future success. Jeff's transition from a salary to a commission-based role significantly boosted his earnings and allowed him to develop a database of smart money managers 1.

I wanted to talk to buy side guys about why they owned whatever the stock was, because I had this view about the way the business was set up and the incentives for sell side research to recommend transaction.

--- Jeff Assaf

Despite initial uncertainty about his career path, Jeff's decision to leave a money center bank in New York was influenced by his dislike for the city's environment and the bureaucracy of large banks 2.

   

Growth

Jeff's career took a significant turn when Oppenheimer recognized his innovative approach and proposed starting a consulting business. This venture, however, eventually outgrew the firm, prompting Jeff to join Bear Stearns, where he established the Bear Stearns Investment Consulting Group 3. The move proved fruitful, with Jeff quickly gaining clients and expanding the business. His loyalty to Bear Stearns was strong, as they consistently honored their commitments and provided essential support.

If it ain't broke, don't fix it. They provided legal, they provided compliance. They let me go around to the different branches and do road shows with their brokers.

--- Jeff Assaf

The 2008 financial crisis, however, led to Bear Stearns' acquisition by JP Morgan, creating conflicts with ICG's business model. This prompted Jeff to establish ICG Advisors, marking a new chapter in his career 4.