Cambridge’s Eric Schwartz looks into the future of independent broker-dealer industry
Predicts next market downturn will usher in new era of big B-D mergers
Eric Schwartz, founder, chairman and CEO of Cambridge Investment Research Inc., is one of the brightest guys in the securities business. One of the most unassuming, too.
He started a predecessor to Cambridge in the 1980s but struggled with it due to its focus on selling foundering oil and gas partnerships. In the 1990s, he launched Cambridge, which was an early proponent of broker-dealers generating revenues from fees rather than commissions. He eventually built the firm into one of the top-tier independent broker-dealers, with more than 3,000 registered reps that produce close to $725 million in revenue annually. A recruiting powerhouse, Cambridge has become a destination for many independent reps and advisers.
I usually check in with Mr. Schwartz at the end of the year to hear his take on industry trends and what could happen in the coming year. But before we get to that, first a little more proof of his sagacity.