NEW YORK — Josh Brown, CEO of Ritholtz Wealth Management, launched a new separately managed account called Porterhouse on June 1 in partnership with Franklin Templeton. The strategy uses a rules-based momentum approach that targets companies exhibiting strong earnings growth and persistent share-price strength.

Porterhouse, named after the premium cut of steak, is designed to hold what Brown considers the market’s best opportunities at any given time. Unlike broad market index funds, which have dominated portfolio construction in recent years, Porterhouse takes a more selective stance, excluding all seven of the so-called Magnificent Seven stocks from its current roster of 58 holdings.

“Everybody's got broad equity market diversification. It costs three basis points, one click and you can own the S&P 500. There are people who are in search of the literal best stocks in the market. The best stocks today won't be the best stocks tomorrow, necessarily,” he said.

The account evolved from Brown’s “Best Stocks in the Market” list featured on CNBC Pro but applies stricter rules to determine inclusion and removal. The strategy allows for holding cash when stocks breach predefined sell criteria, a feature unavailable to most momentum-focused exchange-traded funds that remain fully invested at all times.

“Historically, buying the largest market-cap company is actually a terrible strategy,” he said. “I do think ultimately mean reversion will kick in, and it will not be so simple — Just buy Apple and Nvidia, can't lose.”