by robert jordanEarning hiscorporatebearing onWall Street in thebanking industry,Joseph Rinaldi,Senior ManagingDirector an...
THE SUIT MAGAZINE p.17them,” he pauses again. “In our firmwe’ll represent a client with no regu-latory minimum (we charge ...
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Joseph Rinaldi of Quantum Financial Advisors Finds Sweet Spot in 2013 Market


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Joseph Rinaldi of Quantum Financial Advisors, Inc. (QFA) Finds Sweet Spot in 2013 Market. QFA specializes in Portfolio & Asset Management | Financial Advisory | Investments & Investment Advisory | Wealth Management | Money Management | Capital Markets | Portfolio Risk Management | Managed Futures, Options, Derivatives | Structured Finance.

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  • Yes, this is a sweet spot. You have the expertise and transparency that all clients appreciate which certainly assists in building trust.
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Joseph Rinaldi of Quantum Financial Advisors Finds Sweet Spot in 2013 Market

  1. 1. by robert jordanEarning hiscorporatebearing onWall Street in thebanking industry,Joseph Rinaldi,Senior ManagingDirector and CIOof Quantum Fi-nancial Advisors,prides himselfon being a mav-erick among business executives,advising countless CEO’s, pension& profit sharing plans, endowment/non profits , FDIC/RTC – and in the1990s, even the President of Argenti-na’s finance committee at his BancoHipoticario.Over the years, the former WallStreet advisor said he has discov-ered the “sweet spot” in investmentstrategies, particularly in the areasof portfolio and risk management,institutional sales and trading, andstructured finance. “I had some ex-perience on both the buy and sellsides of banking, while ultimatelycreating financial products for myclients.” Rinaldi said from his officein Washington D.C.In the early 1990s, Rinaldi playeda pivotal role during the bailout ofthe savings and loan industry. “Wefelt with our diverse backgroundin managing risk, we (needed) tohelp our nation through the thriftbailout,” the finance guru insisted.Working vigorously for TheR e s o l u - t i o nFormer Wall Street Exec.Finds “Sweet Spot” in MarketNetting Lion Share of Investment StrategiesTrust Corporation (RTC/FDIC) asone of three senior capital marketspecialists, Rinaldi was responsiblefor liquidating some of the indus-try’s weakest, ailing banks.His advice is not only valued inthe U.S. In fact, after forming Quan-tum Financial Advisors back in1996, this globe-trekking exec eventraveled to Argentina to advise andassist former President Carlos Men-em and his advisors with Argenti-na’s mortgage banking policies. “Wewere there to help President Menemstructure their mortgage industry,”Rinaldi explains in a modest tone.Today, Rinaldi’s company is one ofthe premier boutique financial firmsin the country. “After working forthe RTC/FDIC, I formed the firm,”he says with a business-savvy de-meanor. “I felt it was time.” Quan-tum Financial Advisors provides in-vestment strategies, asset allocation,sector rotation, and utilizes portfolioinsurance to protect principal, al-lowing it to grow and generate in-come.Certainly, Rinaldi has seen hisshare of economic meltdowns inhis time. Always in the trenches, hecontinues to weather countless fiscalstorms. “The hardest thing is main-taining good clients,”he said. “High networth individu-als, endowmentfunds, non-prof-its, retirement plans, small business-es that are eager to build wealth forthe future, while maintaining fulldiscretion on managing their as-sets.” There is a pause in his tone.“After the Bernie Madoff scandal,things changed. But for us, it is veryimportant to give us the ability toinvest and trade (a client’s) accountswithout approval for trades.” That iscalled ‘Discretionary Trading,’ ” Ri-naldi chuckles. “That doesn’t comeeasy – you have to earn that trust.”Acknowledging that the industryis still suffering from increased reg-ulation fueled by the ugly Madoffscandal, Rinaldi admits, “Now peo-ple will shy away from hedge funds,because client money is co-mingled.That is how Madoff pooled client as-sets and then stole client money. So,yes, the industry is still suffering.”Rinaldi said that, being smaller,Quantum Financial Advisors func-tions much differently than thebig boys – J.P. Morgan Asset Man-agement, Goldman Sachs AssetManagement, Merrill Lynch AssetManagement – who are all heavilydependent on larger sums of capitalinvestment. “The difference betweenus and them,” he argues. “And westand neck-and-neck withTHE SUIT MAGAZINE - APRIL / MAY 2013
  2. 2. THE SUIT MAGAZINE p.17them,” he pauses again. “In our firmwe’ll represent a client with no regu-latory minimum (we charge more forsmaller accounts) but with the bigboys you need twenty to twenty-fivemillion before you can be represent-ed by their firm.”But, over the years the fiscal cli-mate changed that paradigm. In fact,Rinaldi said that the economic deba-cle of 2008 caused major fallout formany – across the board. Many cli-ents jumped ship. He said, “We’veenjoyed a couple of larger custom-ers. They recognized and appreciat-ed our unique value proposition,”he explains, “And it’s been a greatmarriage, because they understandwhat’s out there and they don’t wantto go back. These are people who arevery astute in the investment worldand they understand what the com-petition offers.”“One factor playing a bigrole is panic in themarket,” Ri-naldi said.“Thereis fear because of the Internet bub-ble and the real estate bubble in ’08,”he added, “So we keep our investorsfully aware of what’s happening inthe market via emails through quar-terly and inter-quarter broadcasts forour clients.” We also enjoy our annu-al client reviews, performed during alunch or dinner meeting.In 2012, Rinaldi was recognized asone of “America’s Top Financial Ad-visors for 2012” by Conquest Press.He and Quantum Financial have alsobeen featured in Reuters, “The Wash-ingtonian,” “The Wall Street Journal”and countless other publications, in-cluding the Paris magazine, “Gestionde Fortune” in December 2012.As a scholar with a business suit,Rinaldi teaches at the University ofMaryland’s Robert H. Smith Schoolof Business. He and his stu-dents made the national news in 2011when about 60 students from twosections of his Futures, Options andDerivatives course – in answering Ri-naldi’s challenge to reduce the feder-al deficit – produced a white paper,even pitching it to political leadersand pundits. Rinaldi proudly notedat the time that “. . . This paper isdetailed, plausible and significantlyrepresents the next generation’s ideafor reducing the deficit.”