S12 BARRON’S March 16, 2020
AMERICA’S TOP 1200 FINANCIAL ADVISORS 2020
Managing the finances of finance professionals
might sound like an unenviable task. For David
Magrone, founder and leader of the Magrone Group,
it’s a welcome creative challenge.
“How do you convince the masters of the universe
that your solutions are worthy?” says Magrone, who
launched his New York practice as a part of Merrill
Private Wealth Management more than two decades ago.
He currently manages $3.3 billion for 50 clients, half of
them founders or senior principals of private-equity
funds, hedge funds, or financial firms.
Magrone, 51, focuses on ensuring that his finance-pro
clients are diversified around the investments they man-
age themselves, and that the other half of his clients—
top-level business executives—are diversified around
their company stock.
His clients’ deep knowledge of the markets removed
the need for hand-holding through the recent volatility,
but Magrone says he was pleased to be able to report that
he had already dialed back risk in client portfolios going
into the new year. “It’s hard to predict any exogenous
shock like the current one, but we were fortunate to have
been building some dry powder before it hit,” he says.
How that cash will be deployed remains to be seen.
“The question is when the virus will be contained and
what policy action might take place,” he says. “Once the
market gives some clear signals, we will be able to be
more constructive.”
In the meantime, he recommends staying disciplined.
“Most of my clients are fortunate enough that they don’t
need me to make them wealthy—they’ve done that,”
Magrone says. “They need me to make sure their life-
styles and plans are not going to be compromised
should something happen to them or their wealth-
creation capabilities. What’s more important than how
stocks performed versus bonds or alternatives is having
a solid financial plan.”
Magrone aims to foster a relaxed and open dialogue
with clients, and begins every relationship by creating a
four-page resource booklet that gives clients a “synthesis
of their world,” he says. That process highlights any
need for changes such as in tilting of assets, beneficiary
designations, or liability protection.—K.H.
Photograph byERIK TANNER
$3.3B $30M $50M
Total Assets Typical Account Typical Net Worth
New York No. 48
DAVID
MAGRONE
Merrill Private Wealth Management