{"id":995,"date":"2016-02-29T16:13:27","date_gmt":"2016-03-01T00:13:27","guid":{"rendered":"http:\/\/www.checkworks.com\/blog\/?p=995"},"modified":"2016-03-02T09:36:39","modified_gmt":"2016-03-02T17:36:39","slug":"jon-lam-against-all-odds","status":"publish","type":"post","link":"https:\/\/blog.checkworks.com\/index.php\/jon-lam-against-all-odds\/","title":{"rendered":"Jon Lam & Newbury Capital Management: Against All Odds"},"content":{"rendered":"

\"Business<\/a>
\nBy MJ Plaster<\/em><\/p>\n

When life hands us lemons, we\u2019re told to make lemonade. That\u2019s a relatively safe deal, since lemonade is no great prize. Imagine what could happen if, instead, we cut open the lemons, removed the seeds and planted them. We might just grow a lemon orchard if we\u2019re willing to risk losing the lemonade to gain a greater reward.<\/p>\n

<\/p>\n

That\u2019s exactly what Jon Lam and his partner, Stuart Sneddon, did to build Newbury Capital Management from the ashes of Tower Asset Management. Mixed metaphor notwithstanding, the rebirth took guts, determination and decisive action in the midst of chaos. Seven years later, the thriving, employee-owned company manages world-class portfolios.<\/p>\n

The Dividends of Childhood<\/strong><\/span>
\nLam\u2019s first experience in the financial arena dates back to his childhood when his grandmother introduced him to the wonders of dividends. Instead of the usual toys and clothing, she gifted him a few dividend-paying stocks.<\/p>\n

At the time, all Lam knew was, \u201cEvery three months, I received a check for $20\u2014without doing anything [to earn it]. That\u2019s a lot of baseball cards. My dad would let me use a little, and we would put half or three-quarters in my savings. How cool is that when you buy something and get money in the mail every three months?\u201d<\/p>\n

It\u2019s not Rocket Science<\/strong><\/span>
\nSome believe the intricacies of investing might as well be rocket science. While that\u2019s not true, both fields do require a solid foundation in math and the same set of problem-solving skills. In fact, Lam might have been a rocket scientist, since he earned an aerospace engineering degree at Boston University. By the time he realized his heart wasn\u2019t in it, it was too late to switch his major.<\/p>\n

The Siren Call of The Street<\/strong><\/span>
\nInfluenced by his grandmother, Lam followed his passion to Wall Street fresh out of college. He says, \u201cI started with a small brokerage, where I was a little fish in a little pond. I didn\u2019t care for their business practices, so I moved on.\u201d<\/p>\n

Disillusioned with his first employer, Lam moved back to California in 1989. He joined Charles Schwab and had a successful run there for almost a decade. \u201cIt was a great experience, and I learned a ton about business while I was there. I had some great mentors and also gained some lifelong friends.\u201d<\/p>\n

The Tower Years\u2014From the Worst Moments to the Best of Times<\/strong><\/span>
\nAfter his years at Schwab, Lam joined Tower Asset Management in Pasadena, California in 1997. In 2002, just as the markets went through the initial-public-offering collapse, one of the company\u2019s founders left the company and took two of its top producers. Tower lost two-thirds of its clients and asset base. \u201cI thought I would be gone, but instead, they promoted me to president,\u201d Lam recalls.<\/p>\n

\"Jon<\/a>
\nInitially, Lam thought he had been promoted to president to unwind the company. \u201cInstead, we were able to change the culture of the firm and grow it until it was sold in 2009,\u201d he says. \u201cThe turnaround was really due to the great team we had and their willingness to make big changes to survive and thrive.\u201d<\/p>\n

In retrospect, 2002 was a dress rehearsal for Lam\u2019s next defining moment. In 2009, Tower was sold to a Texas bank, which bought the company for its client list and promptly closed the doors. \u201cOne day you show up at work, and there\u2019s little more than an empty building,\u201d Lam says.<\/p>\n

Lam was determined that would not be the final chapter, especially after gaining experience from turning around the company in 2002. Along with most of the former partners, Lam immediately hit the phones and contacted his entire client list. (In California, non compete agreements, where they exist, are unenforceable.)<\/p>\n

After Lam and the former Tower partners contacted their clients and explained what happened, they invited the clients to come to the new company. Working night and day, they managed to bring their clients with them and build a new company from the remnants of Tower. Newbury Capital Management LLC<\/a> was born with Lam assuming the CEO position and Sneddon assuming the Chief Investment Officer position.<\/p>\n

Seven year later, with nearly the entire client list intact and new ones added, Lam and his team have grown Newbury from the lemon seed left behind by Tower.<\/p>\n

Lessons for Success<\/strong><\/span>
\nLam has learned much from his experiences, and he suggests the following for those just starting out and as a reminder for seasoned individuals who may have strayed from the basics:<\/p>\n