Joe Delaney

Each month, LuxeSF profiles a member of The Luxury Marketing Council. This month we talk with Joe Delaney, Principal of Halcyon Investment Partners, a highly-successful investment management firm that caters to the ideal luxury consumer, the very high net worth individual seeking reassurance and service in the management of his/her investment portfolio.

LUXESF: Let’s start with the background on Halcyon.

DELANEY: Halcyon is a new name this year. It’s the result of a merger between two firms, Dynamic Funds Management which has operated since 1983, and Tam Asset Management which has been in business since 1992. Both firms had a nearly identical investment philosophy and approach, which is one that’s more academically-oriented and avoids the trials and tribulations of the traditional active investment approach which picks stocks to try and out-smart the market.

LUXESF: A more conservative philosophy?

DELANEY: Not necessarily. It’s more about looking at long-term academic trends and staying true to your investment beliefs and not looking in the rear view mirror and chasing performance as many investment managers do.

LUXESF: So in summary, what does Halcyon do?

DELANEY: Our primary goal at Halcyon is to assist our clients in balancing their wealth, work, and values. We achieve this through a disciplined and structured investment approach that yields superior results with less stress and worry, and allows our clients to focus on what’s most important in their lives. We manage a team of outside experts to assist them in other needs such as estate and tax planning, insurance, intergeneration transfers of wealth, and philanthropy

LUXESF: Tell me about your underlying investment philosophy?

DELANEY: First you have to know your client and their desire for return and their appetite for risk. Risk and return are related and you cannot expect to be rewarded without taking on risk. There is no “free lunch” when it comes to investing in the stock market. Successful investing means not only capturing risks that generate higher returns but reducing risks that do not.

LUXESF: Tell me about the size and scope of the organization.

DELANEY: Halcyon is an investment advisor registered with the Securities and Exchange Commission. We are focused on helping our clients meet their long-term investment goals. The Halcyon team provides low-cost, diversified, asset class portfolio solutions to serious investors. We currently manage over $600 million in client assets.

LUXESF: The culture of the organization … how would you summarize it?

DELANEY: We put a real high emphasis on balance — for our clients and for ourselves.

LUXESF: What does that mean?

DELANEY: Our primary goal at Halcyon is to assist our clients in balancing their wealth, work, and values. When those three elements are in balance it leads to financial satisfaction. In many new client cases the individual or family will only need to do some fine tuning to bring things into balance. However, in others we utilize a Family Money Coach to assist in achieving that ideal balance and eventual financial satisfaction. We also try and practice what we teach and lead a balanced life as well.

LUXESF: Do you have much turnover in your relationships?

DELANEY: Very little. My guess is that it’s much less than the average investment advisor.

LUXESF: Why do you think they stick?

DELANEY: Everybody says this, but I think we deliver excellent customer service. We’re very responsive. We also have an underlying investment philosophy that does not get derailed by short-term trends or past performance.

LUXESF: Describe your typical client — demographics, investment needs, description of their portfolio, their attitude toward wealth and luxury?

DELANEY: Our clients come from all different walks of life although a common denominator amongst the majority of them is that they are family stewards. We have doctors, attorneys, CEOs, entrepreneurs. Some like to be involved and are captivated by our underlying investment philosophy and others do not want to know much about it. However, we strongly encourage clients to spend time understanding the basic principles and advantages of our approach because it builds confidence and discipline over time. Knowledge, confidence, and discipline lead to the kind of earned trust that we believe is healthier in the long run. It is incumbent upon us to understand each client, develop a plan that aligns attitudes toward wealth and luxury with what is important to that client, and execute that plan faithfully and consistently.

LUXESF: When they come to you for help, what’s their primary motivation?

DELANEY: It really varies. Sometimes it is security and peace of mind. Other times it is taking care of the family and making sure the family is covered in the event of an untimely passing. Most of the time they are referred by another client and are looking for that balance and understanding the referring client has.

LUXESF: Go back to branding issues. What cuts you from the herd of wealth managers?

DELANEY: You are right — there is no shortage of investment advisors. What sets us apart is our deep understanding of the client which allows us to craft a meaningful personal investment plan. We strive in our discovery process to really get to know the client and then continue to WOW them with client-first service. In terms of our asset class investment process, we bring a level of predictability of long-term outcome that most advisors using active strategies simply can’t, which leads to greater confidence in the client’s investment planning.

LUXESF: What do you consider professional success to be — vis a vis your clients?

DELANEY: Seeing my clients get to a point where they are financially satisfied and happy with where they are and where they are going.

LUXESF: How do you know that?

DELANEY: I see that transformation happen all the time where I will bring in a new client and they are concerned about the market. It’s up today and down tomorrow. It is like the client is treading water and all they can see is uncertainty. Through our discovery process we really get to know our clients — their values and goals for the future. Over time they begin to understand and appreciate our philosophy and approach and eventually start to focus on the real priorities in their life — family, work, philanthropy, or whatever it may be. It is at that point that I know I have done my job!

LUXESF: In the case of somebody who achieves satisfaction with their wealth, do you find that the logical progression in their thought process is, “I want to give some of that away?”

DELANEY: It depends on the individual. Often times they are concerned that they do not have enough and sometimes we have to give them permission to give it away. We will work closely with them and usually bring in a philanthropy expert to help with the planning process. It may involve setting up a donor-advised fund or the sale of some illiquid assets.

LUXESF: What’s your primary source of client development?

DELANEY: Our business is at a point where we prefer to mostly work with client referrals. Prospective clients who have been referred already have an appreciation for us and our offering because our current clients are our best advocates. However, we also work closely with a select group of other professionals like CPAs and estate planning attorneys.

LUXESF: From a networking perspective, where do you do the bulk of your networking?

DELANEY: I lead a group called Professional Networking Group in San Francisco that acts as my informal Board of Directors. It is a great resource and group of professionals that I can call upon for client needs or to discuss business challenges.

LUXESF: What ultimately makes for a happy and trusting client?

DELANEY: Research has shown that it’s not the performance that matters most, although we’re certainly proud of ours. It is the depth and warmth of the relationship that really makes the difference and if you are effectively managing client expectations and providing top-notch service they will have a tendency to stick with you even through more challenging times. It’s a very relationship-driven business.

LUXESF: There seems to be a more pronounced culture here in the Bay Area of philanthropy, of giving. Why do you think that is, if that’s the case?

DELANEY: Yes, we live in an area where giving is encouraged and expected. There is a fair amount of wealth here in the Bay Area, so there is the ability to give. Because it is getting established in the culture, there are more opportunities to be exposed to it and see the benefits that your wealth can create. I believe that drives people to be more charitably inclined.

LUXESF: Why did you join The Luxury Marketing Council?

DELANEY: There is an overlap between the luxury segment and the affluent, super affluent and ultra-affluent segments. That overlap becomes even more pronounced at the higher levels of affluence. Any opportunity to gain insight into knowing my clients better allows me to serve them even better. My involvement with The Luxury Marketing Council has been a great experience. I have brought a number of clients to the events and their feedback has been tremendous. So it’s not only been a productive environment for me, but an opportunity to learn as well.