Ritholtz Wealth Management, Franklin Templeton Launch “Porterhouse” Equity SMA
Ritholtz Wealth Management has partnered with Franklin Templeton to launch Porterhouse, a new equity separately managed account strategy designed exclusively for Ritholtz clients.
The actively managed SMA will be powered by Franklin Templeton’s Canvas platform, which provides personalized and tax-aware portfolio management capabilities. According to the firms, the strategy is intended to complement Ritholtz’s existing core asset allocation models while concentrating capital in large-cap companies demonstrating strong momentum and fundamental characteristics.
Porterhouse uses a quantitative screening process focused on companies with favorable earnings trends, cash flow generation and relative strength metrics. Each month, the strategy evaluates stocks within the top 50% of the Russell 1000 Index by market capitalization to generate a focused portfolio of higher-conviction investment opportunities.
“When walking into a great steakhouse, most people aren’t ordering a sampler platter. They’re generally there for the porterhouse,” said Josh Brown. “It’s a deliberate choice to focus on the best thing on the menu and not dilute it with a little bit of everything. That’s the mindset here: we’re concentrating on the stocks that are leading and we’re willing to move on when they’re not.”
The portfolio’s exposure can expand or contract depending on market conditions and the number of stocks meeting the strategy’s momentum and quality thresholds, allowing managers to hold more concentrated positions or raise cash when opportunities become limited.
Porterhouse is scheduled to become available to clients beginning June 1.
