Josh Brown Launches Porterhouse Momentum Strategy

CNBC reported Saturday that Ritholtz Wealth Management CEO Josh Brown has launched a concentrated stock portfolio called Porterhouse. The name borrows from a premium steak cut. Brown says the product targets investors who want more than cheap, broad market exposure.

Why Brown Sees a Gap in the Market

The rise of passive investing has made index funds nearly frictionless to own. Brown acknowledged that S&P 500 exposure now costs almost nothing and takes a single click. But he argued a segment of investors wants a more selective, adaptable approach as market leadership rotates. Porterhouse runs as a separately managed account in partnership with Franklin Templeton. It currently holds 58 positions, none of them Magnificent Seven names.

The strategy is rules-based and leans on two signals: strong earnings growth and persistent upward price momentum. Brown said momentum works because it aggregates the collective decisions of tens of millions of investors worldwide. “The market is very smart,” he told CNBC. Rather than forecasting dominant themes, the strategy simply follows where sustained buying pressure leads.

Background: The Bogle Era and Its Limits

For decades, advisers have steered clients toward low-cost index funds championed by the late Vanguard founder Jack Bogle. That orthodoxy has served most retail investors well. But Brown contended that simply chasing the largest market-cap names carries its own risks. He suggested mean reversion will eventually punish the assumption that megacap leaders cannot lose ground.

Porterhouse grew out of Brown’s existing “Best Stocks in the Market” list for CNBC Pro. The separately managed account version applies tighter filters and a formal sell discipline.

Also Read: What Is a Separately Managed Account and How Does It Work?

Cash as a Feature, Not a Bug

One structural advantage Brown highlighted is the portfolio’s ability to hold cash. Most momentum-focused ETFs must stay fully invested regardless of conditions. Porterhouse can exit a position and park proceeds in cash when a stock breaches its sell rules. Brown said the strategy would rather sit on cash than hold a stock simply to avoid being underinvested.

That flexibility was on display this year with networking equipment maker Ciena, which the portfolio held as data center AI buildouts drove the stock up more than 140% in 2026. Brown noted several industrials and materials names are seeing earnings revisions higher alongside technology plays tied to AI infrastructure spending.

Porterhouse will be available to qualified Ritholtz clients as the firm scales the offering through its Franklin Templeton partnership.

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