Ritholtz teams with Franklin Templeton on exclusive equity SMA

Ritholtz Wealth Management is expanding its investment lineup with the launch of a new equity separately managed account strategy developed in partnership with Franklin Templeton.

The $7.6 billion registered investment advisor said Tuesday that the new strategy, called Porterhouse, will be offered exclusively to its clients and is intended to complement the firm’s existing asset allocation models.

Powered by Franklin Templeton’s Canvas platform, the strategy is actively managed and uses a quantitative process to identify stocks exhibiting both strong price momentum and solid business fundamentals, including earnings and cash flow.

The approach is based on research behind Ritholtz chief executive Joshua Brown’s “Best Stocks in the Market” list and is designed to concentrate portfolios in companies showing sustained leadership.

“When walking into a great steakhouse, most people aren’t ordering a sampler platter. They’re generally there for the porterhouse. 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 actually leading and we’re willing to move on when they’re not. Partnering with Franklin Templeton on this strategy is a natural extension of a relationship we’ve built over more than a decade.”

The model evaluates companies in the Russell 1000 and can adjust its exposure depending on market conditions, increasing concentration when opportunities are abundant and moving into short-term Treasuries when qualifying stocks become scarce.

Michael Batnick, who serves as portfolio manager for Porterhouse, said the strategy aims to blend a disciplined investment process with flexibility.

“We set out to build a concentrated portfolio of exceptional businesses with strong momentum and robust fundamentals. Porterhouse reflects our belief that stock selection can add value when grounded in a repeatable process and implemented with discipline.”

Kevin Murphy said the collaboration reflects a longstanding relationship between the two firms.

“Ritholtz Wealth Management has a long track record of innovation and client-centric thinking. We’re proud to support the launch of Porterhouse and help bring this distinctive strategy to life.”