Bateman Eichler, New Stockbrokerage Firm With a Familiar Name, Opens in Santa Monica.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--Aug. 3, 2000

The creation of Bateman Eichler & Co., LLC, a new, retail stockbrokerage firm, was announced today (Aug. 3) by Peter J. Eichler, Jr., President.

"The Bateman Eichler name is familiar to thousands of investors in California," Eichler said, noting that the original Bateman Eichler & Co., founded in 1931, evolved into one of the largest regional securities firms in the western United States.

"We intend to provide individual investors with service that will be even better than that of the first Bateman Eichler & Co.," Eichler said.

Eichler is the grandson of Rudolph J. Eichler, one of the founders of the original Bateman Eichler & Co. That firm became Bateman Eichler, Hill Richards in the 1960s and for several years was headed by Peter J. Eichler, Sr., son of Rudolph Eichler. In 1982 Bateman Eichler, Hill Richards was merged into a national securities firm.

The majority owner of the new Bateman Eichler & Co. is Aletheia Research and Management, of which Peter Eichler, Jr. is President and Roger B. Peikin is Executive Vice President and General Counsel. From its offices in Santa Monica, Calif., Aletheia manages some $125 million for individuals and partnerships.

Aletheia differs from most money management firms in that it shuns research from Wall Street firms, relying instead on its own investigative efforts. Aletheia's proprietary research will be made available to Bateman Eichler brokers and their customers.

Bateman Eichler & Co., LLC will be based in Santa Monica but will be opening offices in other California cities, Eichler said.

Eichler said he and his associates at Aletheia decided to create a new Bateman Eichler because they believe the traditional brokerage firm has a bright future.

"The conventional wisdom seems to be that traditional brokerage firms are on the way out because many investors are going to electronic brokers and making their own investment decisions," Eichler said.

"We believe that only a small percentage of these investors will be successful, and that those who aren't will realize they need the advice and service offered by traditional firms."

Thus Eichler "was not in the least surprised" when UBS A.G., the Swiss banking giant, announced in July that it would buy the PaineWebber Group, a traditional brokerage firm, for about $12 billion.

In that context, Eichler noted that his maternal grandfather, Henri de la Chapelle, was an original partner of PaineWebber's predecessor firm, Paine Webber Jackson & Curtis, and opened its first Los Angeles office.

Eichler noted that the performance of Aletheia Research and Management has been outstanding this year despite the recent downdrafts in the stock market. All of its investment vehicles are up since Jan. 1, the increases ranging from 9.47 percent to 49 percent.