Sign in Subscribe
Banking industry

Maxus Investment Group's $50 Million Windfall: A Long-Distance Gamble Pays Off

Strategic Insights

— 1 min read

Maxus Investment Group Inc., a Cleveland-based asset management and investment firm, has recently disclosed that six of its individual clients received a combined $50 million in stock as part of an acquisition. The group had initially invested just $2.5 million in 1985 for an 80% stake in Comstock Bancorp, a small, publicly traded thrift in Reno, Nevada. This massive return on investment represents a remarkable success story, not only for the investors but also for the individuals involved, including the Barone brothers, Richard and Robert.

Key Takeaways:

  • The six Maxus clients received a combined $50 million in stock as part of the acquisition of Comstock Bancorp.
  • The group initially invested $2.5 million in 1985 for an 80% stake in Comstock Bancorp.
  • Comstock Bancorp's assets have nearly quadrupled to $230 million from $60 million since 1990.
  • Robert Barone, chief financial officer of Comstock, credits his brother Richard with reaping the benefits of the acquisition.
  • Richard Barone, chief executive officer of Maxus Investment, attributes the success to his brother's hard work in finding and cleaning up Comstock.
  • Robert Barone left his job as economist with the Cleveland Trust Co. in 1979 to become a financial consultant and professor at the University of Nevada in Reno.

Statistics:

  • $50 million: Combined amount received by six Maxus clients as part of the acquisition.
  • $2.5 million: Initial investment made by the group in 1985 for an 80% stake in Comstock Bancorp.
  • 80%: Stake acquired by the group in Comstock Bancorp in 1985.
  • $230 million: Comstock Bancorp's assets since 1990, a tripling of its initial assets of $60 million.

Sources:

  • "Maxus Investment Group's $50 Million Windfall: A Long-Distance Gamble Pays Off" (Source: The Wall Street Journal, no date provided)
  • Richard Barone (chief executive officer, Maxus Investment Group)
  • Robert Barone (chief financial officer, Comstock Bancorp)
  • Laurence Loxterman (former owner, Convenient Food Mart franchise for Northeast Ohio)

Read more