Geode Capital Management, LLC
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.
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. It is registered to manage investments and trade commodities and futures. Geode is also a member of the National Futures Association. Most of the company is owned by Geode Capital Holdings LLC.
Though the firm is now separate from Fidelity, it’s still located near the giant’s headquarters on Summer Street in Boston. Geode employs almost 35 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.
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 a sub-advisor to registered funds sponsored by Fidelity Investments and to affiliates National Financial Services and Fidelity Brokerage 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
- Options
- Quantitative active equity
- Commodities
- Multi-asset classes
Fees Under Geode Capital Management
AMP clients are charged an asset-based management fee ranging from 0.01% to 0.75%.
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 investments@geodecapital.com.
All information was accurate as of the writing of this article.
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