Ritholtz Wealth Management, a national RIA with $7.6 billion in AUM, launched its first equity-only SMA in partnership with Franklin Templeton. Called Porterhouse, the SMA is an actively-managed strategy that will focus on best-performing large cap stocks. It will be available exclusively for qualified Ritholtz clients beginning June 1.\u00a0<\/p>\n
On a monthly basis, Porterhouse will screen companies in the top 50% of the Russell 1000 Index for strong earnings and cash flows to identify those with high potential for future growth. It will then generate a \u201cbuy list\u201d of stocks that meet its specific momentum and quality criteria. The \u201cbuy list\u201d can expand and contract depending on market conditions, allowing the portfolio to concentrate capital in high-conviction names or free up cash by selling stocks when fewer companies meet the investment criteria. That cash will then be re-invested into short-term Treasuries, according to Michael Batnick, managing partner at Ritholtz. Batnick noted that in a prolonged down market, the strategy can reduce its stock holdings to zero if necessary.\u00a0<\/p>\n