Beating the market, and the the drum

NaNcy KuehN | MiNNeapoliS/St. paul BuSiNeSS JourNal
From left: Dan Aronson, Charles Mahar, David Neal, Woody Kingman, Bruce Langer (seated), Jodi Halbert and Michele Hanson, of Tealwood Asset Management
February 4, 2011
Beating theVentures
market, and the drum
Strategies for growing companies
14
Minneapolis/St. Paul Business Journal | mspbj.com
Hosted events help Tealwood Asset Management show its success, win clients
Rachel
Keranen
byby
Rachel
KeRanen
Staff
Writer
Staff
Writer
February 4, 2011
is essential as the company relies on word-ofMORE …
mouth marketing. High-net-worth investors
make up most of their clientele, so Tealwood
Any investment firm can be fearless when
Name: Tealwood Asset Management
Any
investment
firm
can
be
fearless
when
the
officials take pains to make sure they feel taken
the stock market is surging, as it has been lateHeadquarters: Minneapolis
We
look
at
the
challenges
and
successes
care of.
ly.stock
But how
many were
saying “buy!”
2008,been
in lately. But
President and chief investment officer: Charlie
market
is surging,
as itinhas
In what may seem to be an atypical apthe
midst
of a market
free-fall?
Mahar
of a small-business
owner.
how
many
were
saying
“buy!”
in
2008,
in
the
proach, Tealwood’s strategy focuses on
Tealwood Asset Management was.
Employees: 13
midst
of abuying
market
free-fall?
inefficiency.
“We were
stocks
in December of
Assets under management: $375 million at the
“We’ve all worked someplace bigger [and]
2008Tealwood
when we would
defyManagement
you to find another
end of 2010
Asset
was. imizes its presence by inviting the community
manager who was doing that,” said Charlie to them. The lesson: In marketing, sometimes knew there was a better way to do this — both
Web: tealwood.com
“We
were
buying
stocks
in
December
of
from an investment merit standpoint where
Mahar, Tealwood’s president and chief invest- you have to make your own rain.
2008officer.
when
we
would
defy
to findThe
anothfirm hosts a diverse range of events, we get to open up the inefficient corners of the
ment
“Our
advice
was: it’s
nowyou
time to
including
a talk by a member of the 1980 market, but also from a client care standpoint,” Dan Aronson to partner, joining existing partstart
preparing forwho
the recovery.”
er manager
was doing that,” said
Charlie
ners Mahar and chief compliance officer Jodi
Tealwood’s portfolio took a hit in 2008, to be Olympic hockey team, an event this month said Vice President Bruce Langer.
Mahar,
Tealwood’s
president
and
chief
investment
Size also figures into the firm’s growth plans. Halbert.
sure. But the stock market began recovering in featuring a Wall Street Journal reporter, as well
officer.
advicereaped
was:the
it’sbenefits.
now time
to start
Looking ahead, Tealwood officials expect
as more
investment-centric events and brief- Tealwood’s team doesn’t want to get over-large;
early
2009, “Our
and Tealwood
The
firm grewfor
its client
through the Great ings. All are part of a concerted effort to de- they enjoy the “homey” atmosphere and their growth trends to continue. In 2011, Mahar prepreparing
the base
recovery.”
Recession and increased its assets under man- liver the Tealwood story to the widest possible size allows them to enter into the market in dicts that the S&P will return “something along
Tealwood’s
in 2008,
to be
the lines of 10 percent.” He also expects, of
ways other companies cannot.
audience.
agement
from $210portfolio
million intook
2006 a
tohit
$375
“Because we’re managing a smaller asset course, that Tealwood’s portfolios will outper“The economy
million
the end
2010. market began recovering
sure. atBut
the ofstock
in has meant that it’s been a litbit of a struggle for most asset management base, we can own companies that may have form the market.
Last year,
it enjoyed
return of 9.76
percent thetlebenefits.
early
2009,
and aTealwood
reaped
ToKuehN
Mahar’s
prediction, Langer added, “The
in its bond strategy, while the benchmark was firms, particularly small or local or regional fantastic investment merit, but if you’re a NaNcy
| MiNNeapoliS/St. paul BuSiNeSS JourNal
The
firm
grew
its
client
base
through
the
ones,”Great
said Stuart Mason, chief investment of- mega-manager you can’t even look at them,” market results of the last two years have really
just over 4 percent.
on, CharlesThe
Mahar,
David
Neal,
Woody
Kingman,
Bruce
Langer
(seated),
Jodi
Halbert
and
Michele
Hanson,
of
Tealwood
Asset
minds to ‘maybe I want to
ficer atmanthe University of Minnesota. Tealwood Mahar said. Tealwood can find bargains that opened peoples’Management
firm, which
caters
to wealthyits
individuals
Recession
and
increased
assets under
and institutional investors, has bigger plans: It is “very effective in being present and having would be too small to merit attention from the dip my toe back in the water.’ Now they would
agement
from
$210
million
in
2006
to
$375
milwants to keep growing its assets toward the $1 a presence known in areas where their target bigger investment firms, but provide mean- have been much happier if they would have
lion at
the end of 2010.
done that with us two years ago.”
base might be. You run into them everywhere.” ingful results for their clients.
billion
mark.
It is growing, however. The firm Tealwood
firm tries to keep up that level of conBut
it’s not
sitting
on its hands
waiting of
for 9.76The
Last
year,
it enjoyed
a return
percent
new customers to come along. Tealwood max- tact with existing customers, too. Client care recently promoted Langer, David Neal and rkeranen@bizjournals.com | (612) 288-2112
PROFILE
eating the market, and the drum
in its bond strategy, while the benchmark was
just over 4 percent.
The firm, which caters to wealthy individuals
Nancy Kuehn | Minneapolis/St. Paul Business Journal
and institutional investors, has bigger plans: It
From
left:
Dan
Aronson,
Charles
Mahar,
David
Neal,
Woody
Kingman,
Bruce Langer (seated), Jodi
wants to keep growing its assets toward the $1
Halbert
and
Michele
Hanson,
of Woody
Tealwood
Management.
From left: Dan
Aronson,
Charles Mahar,
David Neal,
Kingman,Asset
Bruce Langer
(seated), Jodi Halbert and Michele Hanson, of Tealwood Asset Management
billion mark.
is essential as the company relies on word-ofBut it’s not sitting on its hands waiting for
MORE …
mouth marketing. High-net-worth investors
PROFILE
new customers
to come along. Tealwood maxi- PROFILE
make up most of their clientele, so Tealwood
can be fearless
when
Name: Tealwood Asset Management
mizes
its presence by inviting the community to We look
at thetake
challenges
and successes
of taken
a
officials
pains to make
sure they feel
ng, as it has been lateHeadquarters: Minneapolis
them. The lesson: In marketing, sometimes you
Hosted
show
success,
win
clients
owner. help Tealwood Asset Management
care
of. events
ying “buy!” in 2008, in We look at the challenges and successessmall-business
President and
chiefits
investment
officer:
Charlie
have to makeofyour
own
rain.
In
what
may
seem
to
be
an
atypical
ape-fall?
Mahar
a small-business owner.
is essential as the company relies on word-ofby Rachel KeRanen
MORE …
may Tealwood’s
seem to bePROFILE
an
atypicalfocuses
approach,
marketing. High-net-worth
investors
Writerwhat
proach,
strategy
on mouthEmployees:
gement was. The firm hosts a diverse range of events, StaffAnyIn
13
make up most of their clientele, so Tealwood
investment firm can be fearless when
Name: Tealwood Asset Management
inefficiency.
officials
take pains
to makemanagement:
sure they feel taken $375
cks in December
of a talk by a member of the 1980 Olym- Tealwood’s
Assets
under
million
at the
the stock market
is surging,
as it has beenfocuses
lateHeadquarters:
Minneapolis
including
strategy
on
inefficiency.
care of.
ly. But how many were saying “buy!” in 2008, in We look at the challenges and successes
President and chief investment officer: Charlie
“We’ve
all
worked
someplace
bigger
[and]
imizes
its
presence
by
inviting
the
community
y you to find
another
end
of
2010
of a market all
free-fall?
pic hockey team, an event this month featuring the midst
“We’ve
worked someplace
[and] In what may seem to be an atypical ap- Mahar
of a small-businessbigger
owner.
Tealwood’s strategy focuses on
Tealwood Asset Management was.
Employees: 13
there
was
a better
way
this——both
both proach,
them. The
lesson: In
sometimes
g that,” said
Charlie
Web:
tealwood.com
inefficiency.
“We wereknew
buying stocks
in a
December
of way
Assets under management: $375 million at the
a Wall
Streetto Journal
reporter,
asmarketing,
well as more
knew
there
was
better
to to
dodo
this
“We’ve all worked someplace bigger [and]
its presence
by inviting the where
community
2008 when we
would defy
you
to find another imizes
end of 2010
from
an
investment
merit
standpoint
dent and chief invest- you have to make your own rain.
knew there
was agrowing,
better way to do this
— both
to them.
The lesson: In marketing,
sometimes
manager who
was
doing that,” said Charlie
Web: The
tealwood.com
investment-centric events and briefings. All are from
an
investment
merit
standpoint
where
we
It
is
however.
firm Tealwood
from an investment merit standpoint where
have to make your
own rain. of the
Mahar, Tealwood’s
president
and chiefup
investwe get
to open
theyouinefficient
corners
The firm hosts a diverse range of events,
was: it’s now time to
we
get
to
open
up
the
inefficient
corners
of
the
The
firm
hosts
a
diverse
range
of
events,
ment
officer.
“Our
advice
was:
it’s
now
time
to
part
of
a
concerted
effort
to
deliver
the
Tealwood
get
to
open
up
the
inefficient
corners
of
the
marrecently
promoted
Langer,
David
Nealpartand
Dan
DanbutAronson
tocarepartner,
existing
market,
but also fromincluding
a client
care
including a talk by a member of the 1980
covery.”
Dan Aronson
to partner, joining
existing partalso from a client
standpoint,” joining
a talk
by a standpoint,”
member of the 1980 market,
start preparing
for the recovery.”
ners Mahar and chief compliance officer Jodi
team, an event this
month said Vice President Bruce Langer.
Tealwood’s
portfolio
took
a hit in 2008,
to be Olympic
storytotobethe widest
ket,
butstock
also
from
a client
carehockey
standpoint,”
said
Aronson
toand
partner,
joining
existing
partners
ners
compliance
officer Jodi
Vice
President
Olympicpossible
hockey audience.
team, an event this month
ok a hit in 2008,
Halbert.
Size also Mahar
figures into the
firm’schief
growth plans.
featuringLanger.
a Wall Street Journal reporter, as well
sure. But thesaid
market
began
recovering inBruce
Looking ahead, Tealwood officials expect
early 2009, and Tealwood reaped the benefits. as more investment-centric events and brief- Tealwood’s team doesn’t want to get over-large;
“Theineconomy
hasameant
that Journal
it’s beenreporter,
a little as well
Vice
President
Bruce
Langer.
Halbert.
also
figures
into
firm’s
plans.
featuring
Wall Street
t began recovering
Mahar
and atmosphere
chief and
compliance
officer
Jodi
Halto continue. In
2011, Mahar
preenjoy the “homey”
their growth trends
ings.the
All are
part of agrowth
concerted effort
to de- they
The firm grew itsSize
client base
through
the Great
the S&P will return
“something along
them to enter
into the market
in dicts that
liver the
Tealwood
story
toover-large;
the widest possible size allows
Recession and
increased its assets
under manLooking
ahead,
Tealwood
officials
expect
Tealwood’s
team
doesn’t
want
to
get
as morefor
investment-centric
events and briefd reaped thebit
benefits.
of a struggle
most asset management
Size
also
figures
into
the
firm’s
growth
plans.
bert.
the lines of 10 percent.” He also expects, of
ways other companies cannot.
agement from $210 million in 2006 to $375 audience.
that Tealwood’s
portfolios
will outper“Because we’re
managing
smaller asset course,
“Theatmosphere
economy has meant that
it’s been
a litmillion at the
end of 2010.
growth
trends
toa continue.
In 2011,
Mahar
pre-expect
they
enjoy the
“homey”
and
their
ings. All small
are partoroflocal
a concerted
effort to Tealwood’s
dease throughfirms,
the Great
particularly
or regional
doesn’t
want
to get
over-large;
Looking
ahead,
Tealwood
officials
form the market.
can own companies
that may have
bit of a struggle
for most
asset management base, we
Last year, it enjoyed ateam
return of 9.76
percent tle
dictsinvestment
that the
S&P
return
size allows
themwasto enter
into small
theorand
market
in fantastic
the Tealwood
widest possible
its assets under
manTo“something
Mahar’s prediction, along
Langer added, “The
merit,
but will
if you’re
a
firms, particularly
local or regional
in its bond strategy,
while the benchmark
ones,”
said liver
Stuart
Mason, story
chiefto the
investment
they
enjoy
the
“homey”
atmosphere
their
growth you
trends
Inresults
2011,
preof the lastMahar
two years have
really
can’t evento
lookcontinue.
at them,” market
ones,” said Stuart Mason, chief investment of- mega-manager
just over 4 percent.
thesaid.
lines
of
10findpercent.”
expects,
of I want
ways
other
companies
lion in 2006 to $375 audience.
openedalso
peoples’
minds to ‘maybe
to
Tealwood
can
bargains that He
at the University of Minnesota. Tealwood Mahar
The firm, which
caters
to wealthy
individuals ficercannot.
officer at the University
of Minnesota.
allows
them
towe’re
enter
market
in ways
dicts
S&P from
will
along
dip my toe “something
back in the water.’ Now they
would
be toothat
small tothe
merit attention
the return
is “very the
effective
in being present
and having would
and institutional
investors,
has bigger
plans: It into
course,
that
Tealwood’s
portfolios
will
outper“Because
managing
a
smaller
asset
“The economy
has meant Tealwood
that it’s been asize
lit0.
wants to keep growing its assets toward the $1 a presence known in areas where their target bigger investment firms, but provide mean- have been much happier if they would have
is percent
“very effective
inabeing
present
and
having
a other
companies
cannot.
done He
that withalso
us two years
ago.”
results
for their
clients.10 percent.”
base might be. You that
run into may
them everywhere.”
billion mark.
the
lines
of
expects,
of
form
the
market.
base, we can
own companies
have ingful
tle bit of
struggle
for most
asset
management
eturn of 9.76
It is growing, however. The firm Tealwood
The firm tries to keep up that level of conBut it’s not sitting on its hands waiting for
Langer,
David Neal and Langer
with existing
customers,
too. asset
Client care
new “Because
customers
to come along.
Tealwoodmanaging
max- tactmerit,
rkeranen@bizjournals.com
|will
(612)
288-2112
presence
areas where
theirortarget
we’re
a but
smaller
course,
that
Tealwood’s
portfolios
outperTopromoted
Mahar’s
prediction,
added,
“The
fantastic
investment
if you’re
a recently
firms,inparticularly
small
local base
or regional
e the benchmark
was known
market
results
of the last two years have really
you can’t even
look
at them,”
ones,”
chief investmentbase,
of- mega-manager
might be. You
run said
intoStuart
them Mason,
everywhere.”
we can own companies
that
may
have form
the
market.
peoples’prediction,
minds to ‘maybe
to “The
Mahar
said. Tealwood
caniffind
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that opened
University
of Minnesota.
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o wealthy individuals
The firm ficer
triesattothekeep
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investment
merit, but
you’re
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LangerI want
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dip
my
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they
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to
merit
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is
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rs, has bigger
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tact with existing customers, too. Client care is manager you can’t even look at them,” Mahar market results of the last two years have really
s assets toward the $1 a presence known in areas where their target bigger investment firms, but provide mean- have been much happier if they would have
essential as the
company relies on word-of-mouth said. Tealwood can find bargains that would opened
minds
toago.”
‘maybe I want to dip
done thatpeoples’
with us two
years
base might be. You run into them everywhere.” ingful results for their clients.
marketing.
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investors
make
up
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too
small
to
merit
attention
from
the
bigger
my
toe
back
in
the
water.’
Now
they would have
It is growing, however. The firm Tealwood
The firm tries to keep up that level of conits hands waiting for
mostmaxof theirtact
clientele,
so Tealwood
officials
investment
firms,
but provide
meaningful
results
much happier if| they
recently
promoted
Langer,
David Neal
and been
with existing
customers,
too. take
Client care
along. Tealwood
rkeranen@bizjournals.com
(612) would
288-2112 have done that
pains to make sure they feel taken care of.
for their clients.
with us two years ago.”
ed events help Tealwood Asset Management show its success, win clients
NaNcy KuehN | MiNNeapoliS/St. paul BuSiNeSS JourNal
Beating the market, and the drum
Reprinted for web use with permission from Minneapolis St. Paul Business Journal. ©2011, all rights reserved. Reprinted by Scoop ReprintSource 1-800-767-3263.