economy
Josh Brown, counting on a new momentum strategy, thinks investors want more than index funds
Brown debuted a separately managed account named after a premium cut of steak — built to hold what he considers the market's best opportunities.
TL;DR
- Josh Brown has launched Porterhouse, a separately managed account focused on a momentum strategy.
- The strategy is designed to identify and hold what Brown considers the market's best opportunities, moving beyond traditional index funds.
- Porterhouse partners with Franklin Templeton and favors companies with strong earnings growth and share-price strength.
- Brown believes the rise of passive investing has created demand for concentrated portfolios aimed at capturing top performers.
- The strategy relies on the collective judgment of investors, believing in the wisdom of crowds and the effectiveness of momentum as a factor.
- Despite a momentum focus, none of the 'Magnificent Seven' stocks are currently held in Porterhouse's portfolio.
- Porterhouse can hold cash when stocks violate its sell rules, offering flexibility not typically found in momentum ETFs.
- The account will be available to qualified Ritholtz clients starting June 1.