What Recruiting Chill? UBS Hires Big Producer in Southern California
Despite a well-publicized hiring pullback at UBS Financial Services, the brokerage firm ponied up this week to recruit a million-dollar producer in southern California from JPMorgan Securities.
Jay D. Baumgardner, III, who has been with the JPMorgan branch in Newport Beach since January 2009, left on Thursday with two associates to join the Private Wealth Management “high-net-worth” arm of UBS Wealth Management Americas in the same city, according to BrokerCheck records and sources at both firms.
Baumgardner, who is a chartered financial analyst, did not immediately return a call for comment.
He produced about $2.5 million in the previous 12 months and was courted aggressively by both UBS and Merrill Lynch, according to a recruiting source who declined to be named. The firms are said to be offering upfront compensation of 150% of trailing-12-month production to top brokers with clean compliance records and another 50% if they bring over 65% of client assets within a year, the source said.
If the production number is accurate, Baumgardner would be the second multi-million-dollar broker to leave JPMorgan’s Los Angeles complex this month and the fourth this year. Garrett Bland, a former JP Morgan Securities regional director and its top-ranked Barron’s broker in California, left its Century CIty office earlier this month to join Morgan Stanley.
Robert Martensen, the regional director of JP Morgan’s Newport Beach branch, was not available to comment, according to a person who answered his phone and who confirmed Baumgardner’s departure. Both Baumgardner and Martensen were former military pilots, according to work histories they posted on company and social media websites.
A UBS spokesman did not reply to a request for comment on Baumgardner’s hire, which follows the firm’s issuance of walking papers to another top L.A.-area broker earlier this month over alleged compliance issues. The advisor, David James, joined the West Coast arm of a Connecticut-based independent advisory firm earlier this week.
Accompanying Baumgardner in the migration from JPMorgan to UBS are associates Katy Chen and Danielle Barabino, according to their BrokerCheck records.
Baumgardner, whose says he was a Marine Corps cargo helicopter pilot for seven years, has a clean compliance record along with a peripatetic brokerage career. UBS is at least the eight broker-dealer he has worked at since first registering with regulators in 1988, according to Finra’s BrokerCheck database, including sojourns at Wachovia Securities, UST Securities, Invest Financial and Smith Barney.