Josh Brown launches Porterhouse momentum fund as investors seek

Josh Brown, the CEO of Ritholtz Wealth Management, announced a new separately managed account called Porterhouse that uses a rules‑based momentum strategy to target companies with strong earnings growth and price strength, offering a more selective option beyond broad index funds [1].

Key takeaways

• Porterhouse will be available to qualified Ritholtz clients starting June 1 [1].
• The strategy holds 58 stocks, none of which are among the “Magnificent Seven,” and can hold cash when sell rules are triggered [1].
• Brown cites the “wisdom of crowds” and momentum as the drivers of the portfolio, pointing to Ciena’s 140% gain in 2026 as an example [1].
• The account is run with Franklin Templeton and differs from most ETFs by allowing cash positions to avoid underperforming stocks [1].

A concentrated, rules‑based approach

Brown argues that while broad market exposure remains the foundation of most portfolios, some investors want a product that can adapt as market leadership shifts. Porterhouse builds on his “Best Stocks in the Market” list for CNBC Pro, but applies a systematic momentum filter rather than personal stock picks. The strategy favors firms that demonstrate robust earnings growth and sustained share‑price momentum, relying on the collective buying decisions of millions of investors rather than attempting to forecast sector trends [1].

The portfolio’s construction deliberately excludes the current “Magnificent Seven” names, reflecting Brown’s view that buying the largest market‑cap companies is often a poor strategy. Instead, he highlights Ciena, a networking‑equipment maker that has benefited from AI‑related infrastructure spending, as one of the year’s top performers, with its stock up more than 140% in 2026 [1].

Flexibility beyond typical ETFs

Porterhouse’s separately managed account structure gives it flexibility that many dynamic ETFs lack. Unlike most ETFs, which stay fully invested, Porterhouse can move to cash when a stock breaches its sell criteria, a move Brown says is preferable to holding a declining position that underperforms the market [1]. He acknowledges that this may leave the portfolio underinvested after sharp market sell‑offs, but argues the trade‑off helps avoid “holding volatile stocks just to stay fully invested.” [1]

Why it matters

The launch underscores a growing demand among investors for alternatives to low‑cost index funds that still offer diversification but with the potential for higher returns through systematic momentum. By combining a rules‑based methodology with the ability to hold cash, Porterhouse aims to capture upside from emerging winners while managing downside risk. As the product becomes available to Ritholtz clients on June 1, its performance will be watched as a barometer for how much appetite there is for concentrated, actively managed strategies in a market still dominated by passive investing.