A spin-off from Fidelity Investments, Geode Capital Management manages the investment behemoth’s index funds as a sub-advisor. It also manages assets for institutional and retail investors. All in, the firm oversees more than $308 billion in assets.
Fidelity originally set up Geode Capital to run systematic long/short equity strategies and incubate new strategies. The larger firm sold its ownership stake two years later, in 2003, possibly to avoid the potential conflict of Geode’s shorting stocks held by Fidelity’s mutual funds.
Geode Capital Management Background
Fidelity employees started Geode Capital in 2001. Employees and board directors currently own the firm. Vince Gubitosi, who joined the firm in 2002 and led its absolute return strategies and convertible arbitrage and commodity strategies, serves as president and chief investment officer.
Though the firm is now separate from Fidelity, it’s still located near the giant’s headquarters on Summer Street in Boston. Geode employs 42 advisors.
What Types of Clients Does Geode Capital Management Accept?
Geode Capital serves investment companies, pooled investment vehicles, pension and profit-sharing plans, sovereign wealth funds, corporations, state and municipal government entities and charitable organizations. It also counts U.S. residents who are and aren’t high-net-worth individuals as clients (66 and 398, respectively, to be exact, according to SEC data).
Geode Capital Management Minimum Account Sizes
As a sub-advisor to funds, Geode leaves minimums to the intermediary advisors. It does not publish its account requirements for separately managed accounts, offshore investment trusts or other accounts.
Services Offered by Geode Capital Management
Geode Capital describes itself as “a process-driven asset manager providing global investment solutions across multiple asset classes.” It primarily acts as sub-advisor to registered funds sponsored by Fidelity Investments and to affiliates National Financial Services and Fidelity Brokerage Services. Through the Fidelity Automated Managed Platform (AMP), Geode provides digital advice and discretionary investment services.
Geode Capital Management Investing Philosophy
Geode Capital says that it seeks to capture systematic sources of return by “emphasizing a repeatable, risk-managed and collaborative investment process.” For AMP clients, that means allocating assets in mostly passive investment vehicles (mutual funds and exchange-traded funds) that have lower than average net expense ratios.
In pursuit of both alpha generation and beta exposure, the firm’s strategies include:
- Equity indexes
- Quantitative active equity
- Multi-asset classes
Fees Under Geode Capital Management
AMP clients are charged an asset-based management fee, of which 0.05% is Geode’s sub-advisory fee. Geode also has an agreement with Fidelity that it will receive an annual minimum fee. The firm doesn’t publish its fees for other kinds of accounts.
What to Watch Out For
Though Geode Capital reported having individual clients to the SEC, its materials and website are more targeted for investment professionals. In other words, if you are a retail customer, you would need to be financially sophisticated to work with Geode Capital. Also, the firm does not provide financial planning or wealth management. So if you need help with your finances, Geode Capital is not the right fit.
Geode Capital had no disciplinary or legal actions in the past 10 years to disclose in its more recent SEC filings.
Opening an Account With Geode Capital Management
To contact Geode Capital, call (800) 777-6757 or email firstname.lastname@example.org.
Where Is Geode Capital Management Located?
Geode Capital is located at 100 Summer Street, 12th Floor, Boston, Massachusetts 02110.
All information was accurate as of the writing of this article.
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