What makes GGHC different from a hedge fund or mutual
Each account at GGHC is discrete and managed individually. Hedge funds and
mutual funds are managed collectively. Each GGHC client individually owns and
can view all the positions in his/her account at any time. An investor in a
hedge fund or a mutual fund holds all the investments held by the fund. Mutual
funds charge management fees, and hedge funds charge management fees,
performance fees, and commissions, rather than our straight commissions. GGHC
is regulated by the SEC, NASD and the NYSE.
If you've been around since 1968, why haven't I heard of
GGHC has built its business strictly through referrals from existing clients.
What is the minimum investment you'll consider?
It depends on your personal and financial situation, your goals, and your
broker. Some clients have opened accounts at GGHC with $5000, and some have
opened accounts with more than $100,000.
How much should I invest in growth stocks?
With their GGHC broker, clients must determine, based on their own personal and
financial situation, and goals, what percentage of their assets they wish to
What is an aggressive growth strategy?
An aggressive growth strategy seeks to maximize the return on assets by
investing in securities with high potential returns. These can include
underdeveloped or emerging markets, industries undergoing dramatic change, or
emerging companies. Growth investing can result in dramatic losses over one or
more market cycles.
What does discretionary management mean?
We buy and sell securities on behalf of a client's account without asking for
that client's authorization in advance. Clients provide us with a limited power
of attorney (which they can revoke at any time). Their broker will manage the
account aggressively, seeking the maximum possible capital growth over time.
Do you publish equity research?
No. GGHC conducts company research and does analysis for its own client
accounts. We do not publish our analysis.
Our brokers and our analysts conduct comprehensive research on companies,
industries, and markets where there may be growth opportunities. In addition to
meeting with company management, and analyzing their financials, plans and
results, we investigate supply chains, consumers, competitors - anything that
may provide us with insights or detailed information that can assist our
What is margin?
Margin refers to borrowing funds, using your account equity as collateral. At
GGHC, margin clients borrow funds from J.P. Morgan Clearing Corp. to buy more
shares than the cash value of their account would allow. They pay interest on
the loan, and are potentially exposed to the risk of liquidations, should the
market turn suddenly. There is also a chance that a client could lose more than
their initial investment. Investing on margin is riskier than investing on a
cash-only basis. For margin accounts, we also short stocks - a risky strategy.
Should you open a margin account, a Margin Disclosure Statement will be
provided to you which discusses the operation of a margin account and the risks
associated with trading on margin.
What is short selling?
Short selling is selling shares you do not own to take advantage of an
anticipated decline in price, so that you will be able to buy the shares at a
future date at a lower price. At GGHC, this is done by borrowing the shares
from our clearing agent, J.P. Morgan Clearing Corp., creating a "negative"
position in your margin account until it is closed out, or "covered" by
purchasing the same shares and returning them. GGHC brokers use shorting as a
means of seeking returns in the market as equities go down. Shorting is used to
try to balance risk in margin accounts, and seek performance during a market
decline. Shorting is a risky strategy, because theoretically potential losses
are only limited by how high the price of a stock can go.
Do you provide any other investment services, beyond
GGHC maintains a singular, focused strategy - to seek growth on behalf of
clients by investing in equities. We don't engage in investment banking, or financial planning.
Can a non-US resident open an account at GGHC?
Yes. Many of our clients are non-US residents. We need documentation, and we
always ask questions of all our clients (both US citizens and non-US citizens),
because we must comply with SEC rules regarding client suitability, the US
Patriot Act, and other US securities requirements.
Do you manage accounts for tax considerations?
We aim for long-term capital gains, which are taxed at a lower rate. Growth
strategies sometimes result in large capital gains tax bills, even in years
when performance could be down. This can be unnerving and expensive in the
short run, but over the long term, we believe that this strategy will result in
better than average performance.
How will I know what you're doing with my account?
You can receive information via the web, the mail, and by phone. GGHC clients
receive at least quarterly account statements from J.P. Morgan Clearing Corp.,
confirmations by mail for every transaction, and annual tax reports. They have
constant access to account information via our website, where, among other
information, they can see account activity updated daily. GGHC brokers send
their clients quarterly letters summarizing their activities, and a client may
call their account manager for information during business hours. Since all
equities in an account are owned by the client, the issuer companies send proxy
statements and annual reports to the account holder on a regular basis.