Josh Brown, one of Wall Street’s most prominent financial advisors, said the rise of passive investing is creating demand for a different type of product: concentrated portfolios aimed at capturing the market’s biggest winners.
The Ritholtz Wealth Management CEO and CNBC contributor recently launched an independently managed account called Porterhouse. The account, named after the premium cut of steak, was built to hold what he believes is the best opportunity in the market. Run in partnership with Franklin Templeton, our rules-based momentum strategy favors companies with strong revenue growth and sustained stock price strength.
“Everyone has broad stock market diversification. You can own the S&P 500 for three basis points and in one click,” Brown said in an interview. “There are people in the market who are literally looking for the best stock. The best stock today is not necessarily the best stock tomorrow.”
The launch comes after advisors spent years steering clients toward low-cost index funds popularized by Vanguard founder Jack Bogle. Brown said broad market exposure remains the foundation of most portfolios, but argued that some investors want a more selective approach that can adapt to changes in market leadership.
“Historically, buying the largest company by market capitalization is actually a terrible strategy,” Brown said. “I think it means that eventually the return will begin, but it’s not as simple as that — just buy apple and NvidiaI can’t lose.”
Porterhouse grew out of Brown’s CNBC Pro “Best Stocks on the Market” list, but takes a more selective approach. Despite the strategy’s focus on momentum; Magnificent Seven Current holdings include 58 stocks.
Riding the momentum
Rather than trying to predict which sectors or themes will prevail, Brown said the strategy relies on the collective judgment of investors who are already voting with their dollars.
“The market is very smart. I believe in the wisdom of the crowd,” Brown said. “100 million people around the world are thinking about which stocks to buy. That’s why momentum works as a factor.”
“What we’re not doing is predicting,” he added. “I have no idea what the key market themes will be in the second half of 2026.”
This approach can result in your portfolio becoming a less obvious beneficiary of key market themes.
Brown pointed to network equipment manufacturers. siena It ranks as one of the strategy’s strongest performers this year. The company has benefited from building out its AI infrastructure as data centers require greater network capacity to move information between increasingly powerful computing clusters. The stock price soared more than 140% in 2026.
Siena from this year to today
“There are several names of industrials, materials and technology companies that are directly seeing upward earnings revisions and rising stock prices thanks to AI,” Brown said.
Brown said the strategy has sustained momentum as investors tend to continue to reward companies that benefit from innovation cycles and favorable changes in their industries, creating trends that last longer than many expected.
“Ultimately, companies that are doing well will attract a lot of buyers,” he said. “Even if it’s not a fluke, investors will continue to bid on those stocks over time, and that’s what we’re trying to capture.”
Brown also said the individually managed account structure gives Porterhouse flexibility that many momentum ETFs don’t have. Unlike most exchange-traded funds, which generally remain fully invested, this strategy allows you to keep your cash even if the stock violates sell rules.
“I’d rather hold cash than hold stocks that fall less than the market,” Brown said.
Because of the ability to raise cash, this strategy can leave you underinvested after a major market decline, but Brown said this tradeoff allows you to avoid owning weak stocks just to remain fully invested.
Porterhouse will be available to eligible Ritholtz customers starting June 1st.
