Recently I spoke with Gerry Frigon, the founder and President of Taylor Frigon Capital Management LLC, an SEC registered investment advisory. Mr. Frigon’s journey includes 21 years at Merrill Lynch in San Fransisco, 17 years as an entrepreneur, and tremendous dedication to numerous board positions in the technology, education and non-profit space. Drawing on nearly 40 years of experience in the wealth management industry, Mr. Frigon speaks to the importance of balancing technical expertise with business acumen, aligning business practices with personal values and faith, and the ongoing importance of human relationships in the face of technological advancement.
The Interview
Griffin Connolly: Thank you for taking the time to share your story with us. Let’s dive right in. Can you tell me a little about yourself and your business?
Gerry Frigon: Sure, Griffin. I’ve been in this industry for almost 40 years. I spent 21 years at Merrill Lynch in San Francisco, a large Wall Street firm. In late 2006, I started my company, Taylor Frigon Capital Management, with our first performance date in January 2007. For the past 17 years, we’ve been managing money for high-net-worth individuals in both public and private equity markets, as well as fixed income where appropriate. We also run a multi-family office, offering an integrated model that includes asset management, estate and trust planning, tax services, and acting as a trustee. But primarily, we focus on asset management.
Griffin Connolly: That’s impressive. What led you to start your own business after so many years at Merrill Lynch?
Gerry Frigon: After 21 years at Merrill Lynch, it was a matter of deciding between continuing under a large company’s umbrella or running my own business. While I had a good experience at Merrill Lynch, the level of control and independence you have in a large firm is limited. We were fortunate to have a fair amount of autonomy in managing our portfolios, but it wasn’t the same as building equity in my own company. So, the transition was more about changing the structure rather than the industry. We essentially took the strategies we were running at Merrill Lynch and brought them over to Taylor Frigon Capital Management.
Griffin Connolly: What were some of the main challenges you faced when you branched out on your own?
Gerry Frigon: The primary challenge was growing assets under management, which is essential in our business. This is true whether your part of a large firm or running your own. We already had some clients from my time at Merrill Lynch, many of whom came over with us, which helped initially.
Another significant challenge has been the increasingly complex regulatory environment. While we’ve managed to stay efficient and streamlined, many small asset management firms struggle with compliance and end up reverting to being acquired by larger companies. This regulatory burden is a considerable challenge across all industries, not just ours.
Griffin Connolly: Looking back, is there anything you would have done differently?
Gerry Frigon: It’s easy to look back and think about what could have been done differently. We made a concerted effort to go after institutional business, which in hindsight may not have been the best focus. We found that our real niche is with high-net-worth individuals or families, rather than the less personal institutional world. The institutional world lacks loyalty, and transitions in their financial officers can lead to changing relationships. If I had to do it over again, I would have focused more on building a family-based business from the start, rather than trying to establish an institutional business.
Griffin Connolly: You’ve held various board positions, for education and nonprofits. How important is community and entrepreneurship for you?
Gerry Frigon: Community is crucial. We closely link our business philosophy and our involvement in nonprofit organizations. It’s about having a consistent approach in both our professional and personal lives, grounded in our faith and values. This holistic approach ensures that our business and community contributions are aligned.
Griffin Connolly: What do you find most fulfilling about your entrepreneurial journey?
Gerry Frigon: There’s immense satisfaction in seeing the success of your company. It humbles you regularly, keeping you from becoming too prideful. It’s rewarding to see the impact on our employees and clients and to know that we’re building something lasting that can continue into the future. Our own kids being involved in the business now is also an incredibly rewarding aspect of entrepreneurship.
Griffin Connolly: How has the industry changed since you started, and what trends do you see today?
Gerry Frigon: The industry is very different today than when I started. One significant change is the way young people can enter and build their own businesses. When I started, you could make a living by bringing in small clients and earning commissions, allowing you to build a book of business over time. The move to reduce costs to investors eliminated commission structures, making it difficult for young advisors to survive by bringing in smaller clients. This has led to an aging population of advisors and fewer young people entering the field.
At the same time, it’s taken away a viable source of advice for young and new investors who don’t have a lot of money to invest. We now have this do-it-yourself trend in investment management amongst small investors which has led to many making mistakes without proper guidance. The value of an advisor in helping clients navigate tough times is irreplaceable. That relationship between a young, growing investor and a young growing advisor seems to have gone away. And I think that’s a real problem.
Griffin Connolly: It seems like technology has created more opportunities, but also challenges in replacing the personal connection that advisors provide.
Gerry Frigon: Absolutely. While technology has its benefits, the personal connection and guidance that advisors provide, especially during crises, is irreplaceable. Our role is to prevent clients from making emotional decisions that could harm their financial health. For example, my first client’s family is still with me after 38 years. There were countless times when he would have made poor financial decisions without our guidance. It’s about having the discipline and stomach to navigate through tough times.
Griffin Connolly: As someone who runs a Student Launch club at school, what advice would you give to young entrepreneurs?
Gerry Frigon: Not only do you need a good product or technology, but you also need business acumen. A common mistake is having great technical skills but lacking the ability to run a business. For instance, engineers might focus too much on perfecting a product rather than getting it to market. It’s crucial to balance technical expertise with business strategy. Often, successful startups have a technician and a businessperson working together.
Also, don’t let perfect get in the way of good enough. Get your product out the door, generate revenue, and continue to improve it over time.
Be open to creating a new market rather than just solving an existing problem.
Griffin Connolly: That’s great advice, Mr. Frigon. Thank you for sharing your insights and experiences with us.
Gerry Frigon: My pleasure, Griffin. It’s been great talking with you. Take care.
Read last month’s interview with food futurist Chris Clark here.