 | |
 Headquarters at 100 Summer Street | |
| Industry | Investment management |
|---|---|
| Founded | 2001 |
| Headquarters | , |
Key people | Bob Minicus (President and chief executive officer) |
| Products | Index funds Quantitative funds |
| AUM | $1.155 trillion (December 2023) |
Number of employees | 142 (2022) |
| Website | www |
| Footnotes /references [1] | |
Geode Capital Management, LLC (Geode) is an American investment management firm based in Boston, Massachusetts.
Geode was originally set up by Fidelity Investments in 2001 to run systematic long/short equity strategies and to incubate new strategies. [2] Fidelity initially committed $229 million to Geode Capital, which was computer-driven as an investor, with Fidelity executive Jacque Perold installed as the head of the firm. Perold was later succeeded in 2007 by Vince Gubitosi, who in 2021 was succeeded by Bob Minicus. [3]
In 2003, Geode was spun off as an independent company. [2] A possible reason was to avoid the potential conflict of Geode shorting stocks held by Fidelity's mutual funds. [4] Although separate from Fidelity, it remained located near Fidelity's headquarters on Summer Street in Boston. It continued to manage Fidelity's passive funds as a sub-adviser, according to the Financial Times in England. [5] That year, in 2003, Fidelity Investments hired Geode Capital Management to subadvise on three Spartan equity index funds. [6]
In 2020, it had almost $720 billion assets under management with around 140 employees. [7] [8] In February 2021, the firm was profiled in the Wall Street Journal , with the paper calling it Fidelity's "Secret weapon". [7] [8] During the same month, the firm shut down its hedge fund business following losses due to derivatives. [9]
At the start of 2022, Geode surpassed $1 trillion in assets under management due to the popularity of index funds. [5]
Geode primarily acts as manager (in sub-advisory role) to registered funds (most notably Index 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.
In addition, Geode also manages assets for both institutional and retail investors. This includes corporations, investment companies, pension funds, sovereign wealth funds, 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.
The firm is owned by its employees and board of directors. Most of the staff are quants, which are engineers trained in mathematics or computer science. [3] [7] [8] In 2023, Lionel T. Harris served as chairman of the board. Bob Minicus is president and CEO. The board overall included ten members. [10]
Geode invests in public equity and alternative investment markets, primarily focusing on the growth and value stocks of small to large cap companies.
Geode states it uses a systemic and risk-managed approach to investing that is team-based, seeking capture systematic sources of return by "emphasizing a repeatable, risk-managed and collaborative investment process." [11] In pursuit of both alpha generation and beta exposure, the firm's strategies include equity indexes, options, quantitative active equity, commodities, and multi-asset classes. [12]
A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals.
Passive management is an investing strategy that tracks a market-weighted index or portfolio. Passive management is most common on the equity market, where index funds track a stock market index, but it is becoming more common in other investment types, including bonds, commodities and hedge funds.
The Carlyle Group Inc. is an American multinational private equity, alternative asset management and financial services corporation based in the United States with $426 billion of assets under management. It specializes in private equity, real assets, and private credit. It is one of the largest mega-funds in the world. In 2015, Carlyle was the world's largest private equity firm by capital raised over the previous five years, according to the PEI 300 index. In the 2024 ranking however, it had slipped to sixth place.
Private equity (PE) is capital stock in a private company that does not offer stock to the general public. In the field of finance, private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms rather than the companies that they invest in.
Venture capital (VC) is a form of private equity financing provided by firms or funds to startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in terms of number of employees, annual revenue, scale of operations, etc.. Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capitalists take on the risk of financing start-ups in the hopes that some of the companies they support will become successful. Because startups face high uncertainty, VC investments have high rates of failure. Start-ups are usually based on an innovative technology or business model and they are often from high technology industries, such as information technology (IT), clean technology or biotechnology.
Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. Established in 1946, the company is one of the largest asset managers in the world, with $4.9 trillion in assets under management, and, as of December 2023, $12.6 trillion in assets under administration. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance.
An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. Many ETFs provide some level of diversification compared to owning an individual stock.
BlackRock, Inc. is an American multinational investment company. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$10 trillion in assets under management as of December 31, 2023. Headquartered at 50 Hudson Yards in Midtown Manhattan, New York City, BlackRock has 78 offices in 38 countries, and clients in 100 countries. BlackRock is the manager of the iShares group of exchange-traded funds, and along with The Vanguard Group and State Street, it is considered to be one of the Big Three index fund managers. Its Aladdin software keeps track of investment portfolios for many major financial institutions and its BlackRock Solutions division provides financial risk management services. As of 2023, BlackRock was ranked 229th on the Fortune 500 list of the largest United States corporations by revenue.
AllianceBernstein Holding L.P.(AB) is a global asset management firm providing investment management and research services worldwide to institutional, high-net-worth and retail investors.
James Patrick O'Shaughnessy is an American investor and venture capitalist, currently serving as the CEO of O'Shaughnessy Ventures. He is the founder of O'Shaughnessy Asset Management, LLC, an asset management firm that Franklin Templeton later acquired.
Silver Lake, legally Silver Lake Technology Management, L.L.C., is an American global private equity firm focused on technology and technology-enabled investments. Silver Lake is headquartered in Silicon Valley and New York, and has offices in London, Hong Kong, and Singapore.
An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding capital stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, collectibles and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies, non-fungible tokens, and Tax Receivable Agreements. Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments.
Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth funds, as well as other institutional and individual investors.
Partners Group Holding AG is a Swiss-based global private equity firm with US$147 billion in assets under management in private equity, private infrastructure, private real estate and private debt.
A quantitative fund is an investment fund that uses quantitative investment management instead of fundamental human analysis.
Melvin Capital Management LP was an American investment management firm based in New York City. It was founded in 2014 by Gabriel Plotkin, who named the firm after his late grandfather.
ARK Investment Management LLC is an American investment management firm based in St. Petersburg, Florida, that manages several actively managed exchange-traded funds (ETFs). It was founded by Cathie Wood in 2014. At the height of February 2021, the company had US$50 billion in assets under management. As of October 2023, assets had dropped to $6.71 billion, after a period of poor performance.
D1 Capital Partners is an American investment firm based in New York City, United States. The firm invests in both public and private markets globally.
Arrowstreet Capital (Arrowstreet) is an American investment management firm based in Boston. The firm is noted for its usage of quantitative analysis in its approach to investing as well as maintaining a low profile despite its large number of assets under management.
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