Given the resilience of U.S. markets, and general appreciation in asset values, it’s no surprise that the asset-based fees from its wealth management operations have held up well. In 2020 Focus’ stock climbed 110%, but year-to-date Focus has underperformed the S&P 500. Focus’ aggressive policy of consolidating RIAs has drawn skepticism from Wall Street, which tends to value organic growth more highly. The increased revenues from wealth management extend to Wall Street. Focus acquires the firms that join its partnership but then has a split on cash flows through a non-control agreement.

Source: Forbes May 06, 2021 11:03 UTC