Geode Capital Management is a spin-off from Fidelity Investments, managing the investment behemoth’s index funds as a sub-advisor. It also manages assets for institutional and retail investors. In 2021, the firm was profiled in the Wall Street Journal, with the paper calling it Fidelity's "secret weapon."
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 through a holding company called Geode Capital Holdings, LLC. Bob Minicus, who joined the firm in 2021 , serves as president and CEO.
Though the firm is now separate from Fidelity, it’s still located near the giant’s headquarters on Summer Street in Boston. Geode employs more than 50 advisors.
Geode Capital Management Client Types and Minimum Account Sizes
Geode Capital serves investment companies, pooled investment vehicles, pension and profit-sharing plans, sovereign wealth funds, corporations, government entities and charitable organizations. It also counts U.S. residents who are and aren’t high-net-worth individuals as clients.
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 (ETFs)) 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
Geode Capital Management has no regulatory or legal disclosures present on its SEC-filed Form ADV.
Opening an Account With Geode Capital Management
To contact Geode Capital, call (800) 777-6757 or email firstname.lastname@example.org.
All information was accurate as of the writing of this article.
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