Geode Capital Management

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Geode Capital Management, LLC
IndustryInvestment management
Founded2001; 21 years ago (2001)
Headquarters
100 Summer Street, Boston, Massachusetts
,
U.S.
Key people
Bob Minicus (President and Chief Executive Officer)
ProductsIndex funds
Quantitative funds
AUM$887 billion (June 30, 2021)
Number of employees
140 (2020)
Websitewww.geodecapital.com

Geode Capital Management, LLC (Geode) is an American Investment Management firm based in Boston, Massachusetts.

History[]

Geode was originally set up by Fidelity Investments in 2001 to run systematic long/short equity strategies and to incubate new strategies. In 2003, Geode was spun off as an independent company.[1] A possible reason was to avoid the potential conflict of Geode shorting stocks held by Fidelity’s mutual funds.[2]

Although the firm is now separate from Fidelity, it’s still located near Fidelity’s headquarters on Summer Street in Boston.

As of 2020 it currently has almost $720 billion assets under management with around 140 employees.[3][4]

In 2021, the firm was profiled in the Wall Street Journal, with the paper calling it Fidelity's "Secret weapon".[3][4]

In February 2021, the firm shut down its hedge fund business following losses due to derivatives.[5]

Operations[]

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.

Geode invests in public equity and alternative investment markets, primarily focusing on the growth and value stocks of small to large cap companies.

The firm is owned by its employees and board directors. Most of the staff are Quants -- engineers trained in mathematics or computer science.[3][4]

Investment strategies[]

Geode states it uses a Systemic and Risk-Managed Approach to investing that is Team-based. It seeks to capture systematic sources of return by “emphasizing a repeatable, risk-managed and collaborative investment process.” [6]

In pursuit of both alpha generation and beta exposure, the firm’s strategies include: [7]

See also[]

References[]

  1. ^ "Fidelity Splits Off Geode Capital as Separate Manager (Update1)". 9 February 2006. Archived from the original on 2006-02-09.
  2. ^ Hechinger, John (5 August 2003). "Fidelity Spins Off Geode Unit; Could Allay Fears of Conflict". Wall Street Journal.
  3. ^ a b c Baer, Justin (10 February 2021). "Fidelity Holds Secret Weapon to Take On Robinhood and Vanguard". Wall Street Journal.
  4. ^ a b c "Fidelity Holds Secret Weapon to Take On Robinhood and Vanguard". news.futunn.com.
  5. ^ Baer, Justin; Lim, Dawn (February 28, 2021). "Geode, Fidelity's Index-Fund Manager, Closes Hedge-Fund Business After Derivatives Bets Implode". Wall Street Journal. Retrieved February 28, 2021.
  6. ^ "Systematic and Risk-Managed | Geode Capital". www.geodecapital.com. Retrieved 2021-02-20.
  7. ^ "Systematic Investing | Geode Capital". www.geodecapital.com. Retrieved 2021-02-20.

External links[]

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