Ritholtz Wealth Launches Equity SMA With Franklin Templeton

Ritholtz Wealth Management, a national registered investment advisor with $7.6 billion in assets under management, has launched its first equity-only separately managed account (SMA) in partnership with Franklin Templeton. Named Porterhouse, this actively managed strategy focuses on high-performing large-cap stocks and will be available exclusively to qualified Ritholtz clients starting June 1. The strategy employs a monthly screening process of the top 50% of the Russell 1000 Index, targeting companies with strong earnings, cash flows, momentum, and quality metrics. This approach allows the portfolio to concentrate capital in high-conviction names or shift funds into short-term Treasuries when fewer stocks meet the criteria, potentially reducing stock holdings to zero during prolonged market downturns. Michael Batnick, managing partner at Ritholtz, emphasized the focus on fundamentally sound businesses rather than speculative stocks. Josh Brown, co-founder and CEO, likened the strategy to ordering a premium cut at a steakhouse, highlighting the intent to focus on leading stocks without dilution. The SMA is supported by Franklin Templeton’s Canvas platform for tax-aware portfolios, marking a continuation of the firms' decade-long relationship following Ritholtz's earlier launch of the Goaltender ETF.