 | |
 Headquarters at 100 Summer Street | |
| Industry | Investment management |
|---|---|
| Founded | 2001 |
| Headquarters | , |
Key people | David Lane (President and chief executive officer) |
| Products | Index funds Quantitative funds |
| AUM | $1.483 trillion (September 2024) |
Number of employees | 161 (2024) |
| 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 $1 trillion in assets under management due to the popularity of index funds. [5]
Geode primarily acts as manager (in sub-advisory role) to registered funds (most notably Index Funds) sponsored by Fidelity Investments and to affiliates National Financial Services and Fidelity Brokerage Services. Through the Fidelity Automated Managed Platform (AMP), Geode provides digital advice and discretionary investment services.
In addition, Geode also manages assets for both institutional and retail investors. This includes corporations, investment companies, pension funds, sovereign wealth funds, state and municipal government entities and charitable organizations. It also counts U.S. residents who are and aren't high-net-worth individuals as clients.
The firm is owned by its employees and board of directors. Most of the staff are quants, which are engineers trained in mathematics or computer science. [3] [7] [8] In 2023, Lionel T. Harris served as chairman of the board. Bob Minicus is president and CEO. The board overall included ten members. [10]
Geode invests in public equity and alternative investment markets, primarily focusing on the growth and value stocks of small to large cap companies.
Geode states it uses a systemic and risk-managed approach to investing that is team-based, seeking capture systematic sources of return by "emphasizing a repeatable, risk-managed and collaborative investment process." [11] In pursuit of both alpha generation and beta exposure, the firm's strategies include equity indexes, options, quantitative active equity, commodities, and multi-asset classes. [12]
| Funds | Vintage Year | Capital ($m) |
|---|---|---|
| Fidelity U.S. Value ETF (FCUV) [13] | 2020 | $550.8 |
| Fidelity U.S. Momentum ETF (FCMO) [14] | 2020 | $256.3 |
| Fidelity Canadian Momentum ETF (FCCM) [15] | 2020 | $117.2 |
| Fidelity Canadian Value ETF (FCCV) [16] | 2020 | $182.9 |
| Fidelity All-American Equity ETF (FCAM) [17] | 2024 | $43.6 |
| Fidelity All-Canadian Equity ETF (FCCA) [18] | 2024 | $11.8 |
| Fidelity All-International Equity ETF (FCIN) [19] | 2024 | $42.8 |
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.
An index fund is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that it can replicate the performance ("track") of a specified basket of underlying investments. While index providers often emphasize that they are for-profit organizations, index providers have the ability to act as "reluctant regulators" when determining which companies are suitable for an index. Those rules may include tracking prominent indices like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allow for greater tracking error but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.
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 $5.8 trillion in assets under management, and $15.0 trillion in assets under administration, as of September 2024.
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.
Franklin Resources, Inc. is an American multinational holding company that, together with its subsidiaries, is referred to as Franklin Templeton; it is a global investment firm founded in New York City in 1947 as Franklin Distributors, Inc. It is listed on the New York Stock Exchange under the ticker symbol BEN, in honor of Benjamin Franklin, for whom the company is named, and who was admired by founder Rupert Johnson Sr. In 1973, the company's headquarters moved from New York to San Mateo, California.
Active management is an approach to investing. In an actively managed portfolio of investments, the investor selects the investments that make up the portfolio. Active management is often compared to passive management or index investing.
A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be "fettered", meaning that it invests only in funds managed by the same investment company, or "unfettered", meaning that it can invest in external funds run by other managers.
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$11.5 trillion in assets under management as of December 31, 2023. Headquartered in New York City, BlackRock has 70 offices in 30 countries, and clients in 100 countries.
In finance, assets under management (AUM), sometimes called fund under management, refers to the total market value of all financial assets that a financial institution—such as a mutual fund, venture capital firm, or depository institution—or a decentralized network protocol manages and invests, typically on behalf of its clients. Funds may be managed for clients, platform users, or solely for themselves, such as in the case of a financial institution which has mutual funds or holds its own venture capital. The definition and formula for calculating AUM may differ from one entity to another.
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under the Investment Company Act of 1940. Investment companies invest money on behalf of their clients who, in return, share in the profits and losses.
State Street Global Advisors (SSGA) is the investment management division of State Street Corporation founded in 1978 and the world's fourth largest asset manager, with nearly US$4.1 trillion in assets under management as of December 31, 2023. SSGA operates through State Street Global Advisors Trust Company, which is a subsidiary of State Street Bank and Trust Company.
A portfolio manager (PM) is a professional responsible for making investment decisions and carrying out investment activities on behalf of vested individuals or institutions. Clients invest their money into the PM's investment policy for future growth, such as a retirement fund, endowment fund, or education fund. PMs work with a team of analysts and researchers and are responsible for establishing an investment strategy, selecting appropriate investments, and allocating each investment properly towards an investment fund or asset management vehicle.
AdvisorShares Investments is a US-based investment management firm based in Bethesda, Maryland which offers actively managed exchange-traded funds (ETFs) through the AdvisorShares Trust. AdvisorShares partners with third party financial advisers who already manage clients’ assets to package their investment strategy using exchange-traded funds. As part of promoting its funds it also provides educational support to help financial advisors and investors understand actively managed ETFs and their underlying investment strategies.
A quantitative fund is an investment fund that uses quantitative investment management instead of fundamental human analysis.
Amundi is a French asset management company. With €2.2 trillion of assets under management (AUM) in 2024, it is the largest asset manager in Europe and one of the 10 biggest investment managers in the world.
Lee Thomas Kranefuss is an American businessman, investment manager, corporate adviser, and entrepreneur.
CI Financial is a Canadian investment management company based in Toronto, Ontario. It offers investment management and wealth management services targeted to high net worth retail investors, as well as brokerage and trading services to portfolio managers and institutional investors.
Catherine Duddy Wood is an American investor and founder, chief executive officer (CEO), and chief investment officer (CIO) of Ark Invest, an investment management firm.
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.
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