Timothy McGregor has joined Chicago-based Riverbend Capital Advisors as managing partner. He will oversee the shaping and execution of investment strategies as well as manage client portfolios and contribute to the firm's business development.
"Riverbend is really a firm that believes in treating each client specifically, on an individual basis, to meet their needs — and they've been doing that for 10 years," McGregor said. "They've got a very dedicated client base; I've gotten to know some of the clients, and they speak so highly of the service that's been provided. I'm thankful to be part of the team going forward."
"Tim's appointment underscores our commitment to attracting top talent to better serve our clients and drive the firm's growth," said Tom Hession, Riverbend founder and managing partner. "His proven track record and alignment with our values make Tim an excellent addition to our team."
McGregor joins Riverbend from The Northern Trust Company, where he was director of municipal fixed income, leading municipal portfolio management, strategic planning, trading and risk management for more than 3,500 separately managed accounts and seven mutual funds, which total $35 billion in assets.
He has 32 years of experience in the muni market. He earned a bachelor's degree in economics from Indiana University and CFA designation.
"The municipal business is very much a relationship business," McGregor said. "So, with three decades in the business, I've made a lot of relationships over the years, and I think those are valuable points of trust that clients have in me, from consultants to individuals to family offices to institutions. I'm looking forward to re-engaging some of those relationships and providing them a service from Riverbend."
Riverbend specializes in customized separately managed accounts. It has engaged John Hallacy Consulting to boost its credit research arsenal and has also partnered with O'Brien International.
McGregor said he is going to help the firm grow its business — the firm views the macro environment as pointing to a business they can commit to expanding — and possibly add a few products. But, he added, "We're going to stick to the high-quality SMA business, and I really believe we can be the safest, hardest-working SMAs in the country."
He said Riverbend believes in taking advantage of some of the inefficiencies in the market as opposed to making a big bet on credit. Those inefficiencies aren't going away anytime soon, he noted, and with 80,000 different issuers and many different market participants, there is no shortage of opportunities.
"Supply has been very strong this year, up 30%, which is not much of a surprise — I mean, given the incredible infrastructure needs that this country has and will continue to have for probably a decade," McGregor said. "I expect supply to stay high, which is a good opportunity for investors. More supply can create generous yields on the tax-exempt side, so that's a big theme. And then clearly, just looking at the yield curve maturity spectrum, there are some areas that provide a lot of opportunity, particularly that one- to three-year space right now is really attractive."
Riverbend is "lukewarm" on intermediates, he said, but moving toward the 20-year range, they see some "very attractive" yields, particularly on an after-tax basis, he added.
"The thing I enjoy the most about the muni market is it's different every day and hard work pays off," McGregor said. "It's a market where if you work hard, you can truly make a difference for clients and perform in the marketplace without taking a step down in credit quality."
