Robert Stanger was a man who made a difference.
Bob Stanger, 65, who died in Mexico in April, began
as modestly as it gets-publishing his first issues of The Stanger
Report, the monthly newsletter on direct participation investments that
he personally authored, from a bedroom in his home.
But his experience and abilities were anything but
modest. He left a successful 17-year career on Wall Street to form
Robert A. Stanger & Co. in Monmouth County, N.J., in 1978. From the
start he had an almost uncanny ability, both in writing and in
conversation, to go straight to the essence of an issue, to accurately
assess it, and then to transform the complex into simple explanations
while generating a totally unexpected solution. Within five years,
virtually every securities brokerage office in the United States
carried a copy of The Stanger Report. It became known as the "Bible" of
direct participation investments.
Stanger's unheralded mission was to improve the
quality of limited partnerships and other direct investments, for the
sake of investors and the industry itself. To that end, he brought
sophisticated securities rating and research to this emerging industry.
Stanger originated the first performance studies, comparing the
investment success of more than 600 oil and gas programs-an act that
did not ingratiate him with some of the more lackluster sponsors. He
did not expect Stanger's Drilling Fund Yearbook to be a raging
commercial success, but he wanted to bring more accountability to the
industry. He introduced the first product ratings. His "Investor Share
Ranking" was a tool that enabled direct comparison of fees from the
chaos of undecipherable program structures.
To foster better decision-making by investors and
investment advisors, Stanger invented a host of analytical tools
specifically for direct participation investments. He published
procedures for product due diligence. He provided guidance in countless
articles, authored books and produced educational courses for the
College of Financial Planning and the American Society of Certified
Public Accountants. The methodologies he created became the standard
for a generation of brokerage industry due diligence officers.
Stanger also helped organize the direct investment
industry. He created "The Forum," the first annual conclaves of CEOs
and industry leaders designed to address the challenges facing the
direct investment industry and improve its products. Stanger saw the
need for political action and organized the Investment Partnership
Association (later renamed the Investment Program Association).
By the mid-1980s Stanger was recognized as the
nation's pre-eminent expert on limited partnerships. He was featured on
the cover of Money Magazine. He appeared on Wall Street Week. He was
the "go to" man for the financial press when writing about the
industry. The best and brightest came to know Stanger as one of the
premier creative intellects in the direct investment community.
New Jersey Senator Bill Bradley sought his input on
the Bradley-Gephardt Tax Reform Bill. Stanger was called upon to help
NASAA assess the fee guidelines for direct participation programs. He
was asked to testify before Congress, and gave advice to federal and
state regulatory agencies.
Bob Stanger's vision and creativity helped carry his
company and many of the nation's most noted investment managers through
a three-decade rollercoaster ride spanning both bust and boom times.
And when bust came in the late 1980s to limited partnerships, Stanger
confronted it, while remaining committed to the industry. While he knew
that macroeconomic forces were the primary culprits in the decimation
of the real estate and oil and gas industries, he also spoke out
against the abuses. He published a "Hit List" of deals to avoid. He
helped author the NASD's rollup rules to protect investors in
partnership consolidations. He worked to have the industry provide more
accurate valuations to investors, while arguing for improved fee
structures. And when the "re-birth" of the real estate industry
occurred in the early 1990s, Stanger's company was providing financial
advisory and investment banking services in more than $20 billion of
real estate mergers and consolidations which ushered in a new
generation of publicly traded REITs.
But there was another side to Bob Stanger that many
may not have known. He was in some ways an anachronism-a renaissance
man trapped in the 20th century. His talents were enviable and seemed
almost boundless. Take athletics. To see him, you would not imagine Bob
Stanger as a pole vaulter-yet he was an accomplished one as a young
man. As an adult he was a skier and a single-digit handicap golfer. Bob
was an accomplished pianist. The book de jour in his briefcase was
never predictable-history, politics, science. A voracious reader, he
was always interested and informed.
In addition to achieving visible successes, Stanger
quietly influenced for the better the lives of scores of employees. He
was a valued mentor to many aspiring professionals, helping develop
their skills and confidence while under his employ, and generously
helping them move on to greater success. He took a personal
interest in every employee-from receptionist to managing director.
Everyone was respected for his or her contribution. It's a reflection
on his character and the environment he created that more than half of
the people currently employed in his company, based in Shrewsbury,
N.J., have been there for more than 20 years.
In short, Bob Stanger was a trusted counselor and
friend to all whose life he touched. His leadership and vision helped
many achieve greater things for themselves, their families, and the
industry than any one could have imagined.