Josh Brown, counting on a new momentum strategy, thinks investors want more than index funds Josh Brown of Ritholtz Wealth Management has launched Porterhouse, a separately managed account utilizing a rules-based momentum strategy in partnership with Franklin Templeton. This strategy aims to capture the market’s best opportunities by favoring companies with strong earnings growth and persistent share-price strength, moving beyond the broad diversification of index funds. Unlike many ETFs, Porterhouse can hold cash when stocks violate its sell rules, offering flexibility to avoid weakening companies.

• 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.