Where do analysts “of a certain age” go? Like the elephants’ burial ground, it’s a bit of a secret, which we are now going to divulge. They go to Burnham Financial.

Jon Burnham, CEO, is going to turn 70 this month. That makes him a relative youngster at Burnham Financial, where age and experience are valued, not shunned.

Burnham Financial traces its roots to the founding of Burnham and Company in 1935 by the highly respected I.W. Burnham, who was universally known as Tubby. In 1973 the firm merged with Drexel Firestone, acquired Michael Milken’s merry band, and ultimately became the junk bond powerhouse that epitomized the excesses of the 1980s financial markets.

In 1989, before its meltdown, Drexel Burnham sold its retail brokerage business to Smith Barney. Soon thereafter, Tubby Burnham spun the funds management operation out of Drexel, and set up shop on his own. Months later, his son Jon joined the small team of fund managers. According to Jon, his father was still opening accounts until his death at age 93.

A few years ago the firm joined another small retail broker, Silberberg Rosenthal. Otherwise, Burnham has grown by attracting individuals, many of whom are somewhat long in the tooth but have been at the top of their fields or have actually run competing entities. Most are weary of working for large firms or tired of going it alone. However, this is not a group for whom the term “energy crisis” has personal resonance.

Today the firm’s employment has grown to about 120, with offices in New York, Houston, Los Angeles, and Chicago. Burnham has research specialists and several corporate finance professionals. The company also manages the Burnham Fund and distributes the highly ranked Burnham Financial Services Fund, run by Mendon Capital’s Anton Schutz. Mainly, what the firm has to offer is experience and, consequently, insight.

“We have made all the mistakes you can make in our careers,” one veteran money manager says. Another lauds the management for having “respect for professionals” and opportunistically adding expertise when it becomes available.

A recent example is the hiring of Al Anton and Frank Reinhardt, leading oil industry experts who were formerly employed by Carl Pforzheimer & Company. Since that firm closed its brokerage operations, the team was temporarily homeless. After discussions with several firms, they decided to join Burnham.

Perhaps because most of the group has been around for a good while, Burnham’s analysts and money managers share ideas with an unusual openness. They enjoy sounding out investment concepts both informally and at a weekly gathering in an environment devoid of the kind of pressure exerted at firms churning out IPOs and supporting enormous overhead.

Who sits around the table? Among others, Burnham boasts the services of David Leibowitz, a well-known consumer company analyst, who has done well for clients in recent years with his recommendations of various cruise line stocks, such as Carnival and Royal Caribbean. Mr. Leibowitz, who has been in the business since 1965, was twice named one of the year’s “Top 10 Hitters” by Institutional Investor Magazine.

Mr. Leibowitz cites “the ability to interact with others and being surrounded by so many self-starters” as one of Burnham’s allures. Like many of his colleagues, he manages accounts, which means a higher premium on the accuracy of his stock picks.

Another familiar name is that of David Healy, a highly regarded auto analyst who lives in Arizona but stays on top of auto industry trends and is credited by his colleagues for having been early to jump on hybrid car manufacturers and out of Ford and General Motors. Mr. Healy was a top Institutional Investor analyst for many years while working at Drexel Burnham and later at S.G. Warburg.

Kenneth Safian, president and founder of Safian Investment research, operates as a division of Burnham and Company, providing some 35 institutional clients with economic and strategy pieces.

Mr. Safian’s career began back in 1958 at Dreyfus & Company. Mr. Safian joined the Burnham family two years ago, after many years of independence, as he wearied of dealing with a mounting compliance burden. He also cites Jon Burnham’s reputation for honesty and intelligence as compelling attractions.

Today, he is delighted with his new home. His operation functions pretty much as it always has, he has the support of a larger organization, and he can concentrate on advising clients.

His outlook on stocks is not quite as sunny as his view of Burnham. Though he expects the economy to have a reasonably buoyant year, he is concerned by the possibility that the stock market will become more volatile as the use of derivatives expands, and as more trading moves to electronic forums, which may not have the capability to deal effectively with a sudden market drop.

Also showing up on the Burnham roster are Robert Schweich, a wellknown specialty retail analyst, and Dr. Mordechai Abir, a Mideast expert who has a loyal following. Both were previously at Wertheim Schroder.

What’s next for Burnham Financial? Jon Burnham is optimistic: “The experience around this place is breathtaking. People want to do business with people like us.” Like many of his colleagues, Mr. Burnham has been in the business for many years – 46 to be exact.

He is also optimistic about the market. “You have to be optimistic. As far as I can see, earnings look good, inflation is under control, and the economy is starting to slow up, which is not necessarily bad for the stock market.”

His biggest challenge? To find someone to succeed him. Also, he would like to build the firm’s money management and corporate finance operation. A hedge fund, perhaps? He’s not keen on the idea, finding the fee structures and compensation over the top. How quaint.

For now, there appear to be plenty of individuals who are looking for a supportive firm from which they can ply their trade. And, just to set the record straight, they are not all in their 60s and 70s. One relative youngster at the firm, account executive Moss Plaine, who is in his 30s, is another Burnham enthusiast. “I like being surrounded by people with so much experience.” Now there’s a thought you don’t often hear on Wall Street.

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