Fee-based advisory firm Gilder Gagnon Howe & Co. (GGHC) has billions of dollars in client assets under management (AUM). The financial advisor primarily offers portfolio management to thousands of individual and institutional clients. The firm is headquartered in New York City.
As a fee-based firm, certain advisors a GGHC can earn compensation beyond just client-paid fees. On the other hand, a fee-only firm earns all of its compensation from what clients pay.
Gilder Gagnon Howe & Co. Background
Founded in 1968, GGHC operates as a registered investment advisor (RIA) and registered broker-dealer. The independent firm also works with National Financial Services (NFS) to provide clearing brokerage and custodial services.
Co-CEO Shaiza Rizavi is the principal owner of Gilder Gagnon Howe & Co. The firm's other co-CEO is James Deutsch.
Gilder Gagnon Howe & Co. Client Types and Minimum Account Sizes
GGHC extends its advisory services to individuals with and without a high net worth, trusts, estates, charitable organizations, partnerships, limited liability companies (LLCs), corporations and investment clubs.
The firm generally doesn’t impose a minimum account size requirement, however, to open a margin account then the minimum is $5,000.
Services Offered by Gilder Gagnon Howe & Co.
GGHC primarily provides investment advisory services. These services are entirely offered on a discretionary basis, which means clients give the firm the ability to make investment decisions on its own. The firm also utilizes a wrap fee program that bundles all advisory, custodial and transactional charges into a single rate.
Gilder Gagnon Howe & Co. Investment Philosophy
GGHC's website says its advisors utilize research-based strategies that generate long-term returns on investments. It also touts its belief that there’s no such thing as safe stock and that capital growth can only be achieved through patience.
The firm’s investment strategies are based on research, and advisors commonly employ technical and fundamental analysis when evaluating securities. GGHC’s investment strategies also include long- and short-term purchases, trading, options transactions, short sales and margin transactions.
Fees Under Gilder Gagnon Howe & Co.
For investment advisory services, GGHC specifies the compensation structure in each client’s investment advisory agreement. The firm charges commissions for non-retirement account transactions, and it charges retirement accounts asset-based wrap fees.
The commission rates for non-retirement accounts are 1.5% for equities, 2.00% on options with a premium of less than $5, $10 on options with a premium over $5, $1 per $1,000 of face value on bonds, 1.5% per ETF trade and $0.05 per share for non-discretionary trades. Asset-based fees for client retirement accounts are 3% on up to $1 million and 2.50% on everything above $1 million.
What to Watch Out For
Gilder Gagnon Howe & Co. has one disclosure listed on its Form ADV. Within this regulatory disclosure, the SEC levied that GGHC had not adequately conducted excessive trading reviews of client accounts from 2017 through early 2018. The SEC also stated on the ADV that the firm's chief compliance officer at the time "altered documents relating to the reviews, and produced these altered documents to the SEC staff on behalf of the firm." As a result of this situation, the firm paid a $1.7 million fine and submitted to censure and a cease and desist order.
GGHC can earn additional compensation from its brokerage services, creating a potential conflict of interest if advisors become incentivized to recommend commission-based products over client needs. The firm still has a fiduciary duty to serve each client’s best interest though.
Opening an Account With Gilder Gagnon Howe & Co.
The firm offers three options for getting in touch. You can either reach out through the firm's informational email, fill out its website’s contact form or set up an appointment with an advisor by calling (212) 765-2500.
All information was accurate as of the writing of this article.
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