James T. Cavanaugh III, an investment advisor who served on medical and educational boards, died of dementia complications June 17 at his Edenwald Senior Living home. He was 89.

Born in New Haven, Connecticut and raised in Holyoke, Massachusetts, he was the son of James T. Cavanaugh Jr., an insurance agent, and his wife, Gertrude Graves. He earned a degree in economics from the College of the Holy Cross and served in the Army and the Army Reserves.

He met his future wife, Gertrude “Gerry” Canfield, on a summer vacation at Crescent Beach in Connecticut. After working at Union Camp Paper Co., he moved to Baltimore in 1961 to join the Alex. Brown & Sons investment bank.

According to a family biography, Mr. Cavanaugh worked alongside senior partner Charles S. Garland Sr. on bond issues for the Delaware Memorial Bridge, the Delaware Turnpike and Maryland’s John F. Kennedy Highway, I-95 in Northeast Maryland.

In 1969, Mr. Cavanaugh was elected a general partner at investment company Alex. Brown, and in 1971, he became a partner in charge of the Public Finance Department, where he was responsible for originating several municipal bond financings.

He also formed a unit to underwrite bonds issued by state authorities to finance continuing care retirement communities, including Roland Park Place and Edenwald.

Mr. Cavanaugh was also a member of the firm’s Executive Committee from 1975 to 1986 and was later a director of the firm.

After he retired from Alex. Brown in 1990, Mr. Cavanaugh founded Cavanaugh Capital Management, a Towson investment firm specializing in bond portfolio management for institutions and individuals.

He went on to manage about $1.5 billion in assets for its clients, including insurance companies, health care systems, public authorities, charitable foundations and Roman Catholic religious organizations.

He remained as Chairman until July 2010, when CCM merged with the investment firm Brown Advisory. Mr. Cavanaugh served as a senior advisor.

“Jim was an icon in the Baltimore finance industry — and nationally, too. He worked with corporate, municipal and individual clients. He was extremely well respected for his investment and finance insight,” said Mike Hankin, co-chief executive of Brown Advisory.

“But, at his core, Jim loved people. He loved his clients and took time to get to know them as individuals. He especially loved working with younger people,” said Mr. Hankin. “I was lucky to get to know him early in my career and he was particularly helpful as I shifted from working in law to the early days of Brown Advisory.”

Mr. Cavanaugh was a trustee of Loyola University of Maryland, St. Mary’s Seminary & University, Bon Secours Hospital and St. Paul’s School for Girls.

He also served on the boards of Mercy Medical Center and the Jenkins Memorial Home in Southwest Baltimore. He was a founding board member of the Sisters Academy of Baltimore.

Mr. Cavanaugh was a long-time member of the Baltimore Country Club and the Country Club of Maryland. He was a communicant of St. Pius X Church and St. Ignatius Church in Mount Vernon.

Mr. Cavanaugh had a life total of nine holes-in-one. He also traveled widely and enjoyed classical music, reading, history, movies, Italian food and a good chardonnay.

A Mass of Christian burial will be held at 10 a.m. Monday at St. Mary’s Seminary & University, 5400 Roland Ave.

Survivors include his wife of 64 years, Gertrude “Gerry” Canfield Cavanaugh, a Stella Maris Hospice chaplain; two daughters, Kathy Cavanaugh of Providence, Rhode Island and Eileen Bender of Glen Ellyn, Illinois; two sons, James Cavanaugh of Cape Elizabeth, Maine and John Francis “Jack” Cavanaugh of Towson; a sister, Rosemary Turano of Stamford, Connecticut; and six grandchildren.

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