Geode Capital Management, LLC (Geode) is an American

investment management Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institut ...

firm based in Boston, Massachusetts.

History

Geode was originally set up by

Fidelity Investments Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is on ...

in 2001 to run systematic

long/short equity Long/short equity is an investment strategy generally associated with hedge funds. It involves buying equities that are expected to increase in value and selling short equities that are expected to decrease in value. This is different from the ri ...

strategies and to incubate new strategies. 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 Vincent Gubitosi, who in 2020 was replaced by Bob Minicus. In 2003, Geode was spun off as an independent company. A possible reason was to avoid the potential conflict of Geode shorting stocks held by Fidelity's mutual funds. 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 The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...

'' in England. That year, in 2003, Fidelity Investments hired Geode Capital Management to subadvise on three Spartan equity index funds. In 2020, it had almost $720 billion assets under management with around 140 employees. In February 2021, the firm was profiled in the ''

Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

'', with the paper calling it Fidelity's "Secret weapon". During the same month, the firm shut down its

hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...

business following losses due to

derivatives The derivative of a function is the rate of change of the function's output relative to its input value. Derivative may also refer to: In mathematics and economics * Brzozowski derivative in the theory of formal languages * Formal derivative, an ...

. AUM was $359 billion in 2017. In August 2021, Geode's assets under management were $719 billion. At the start of 2022, Geode surpassed $1 trillion in assets under management due to the popularity of

index fund An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can a specified basket of underlying investments.Reasonable Investor(s), Boston University Law Review, avail ...

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

corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...

investment companies 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 ...

pension fund A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...

s, sovereign wealth funds, state and municipal government entities and

charitable organization A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, Religion, religious or other activities serving the public interest or common good). The legal definitio ...

s. It also counts U.S. residents who are and aren't

high-net-worth individual High-net-worth individual (HNWI) is a term used by some segments of the financial services industry to designate persons whose investible wealth (assets such as stocks and bonds) exceeds a given amount. Typically, these individuals are defined ...

s as clients.

Owners and staff

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. In 2023, Lionel T. Harris served as chairman of the board. Bob Minicus is President and CEO. The board overall included ten members.

Investment strategies

Geode invests in public equity and

alternative investment An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as ...

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.” In pursuit of both alpha generation and beta exposure, the firm's strategies include equity indexes,

options Option or Options may refer to: Computing *Option key, a key on Apple computer keyboards *Option type, a polymorphic data type in programming languages * Command-line option, an optional parameter to a command *OPTIONS, an HTTP request method ...

, quantitative active equity,

commodities In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a comm ...

, and multi-asset classes.

References

External links