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Direct Indexing Was a Step Forward. We Kept Walking.

Jeff JorgensenNov 6, 20252 min read

When we built Cap Six, the goal was not to chase trends; we just wanted to build a better way to invest.

We started with what mattered most to us as investors:

  • Tight risk controls based on evidence
  • An intelligent, repeatable research process powered by data and AI
  • After-tax compounding through tax management
  • A high-touch Investment Committee process that brings human judgment and accountability to it all

We did this because it is how we wanted our money managed.

At first, we thought our biggest competition would be legacy active managers doing things the same old way they had always done them.

But as we have deepened conversations with advisors and allocators, we realized Direct Indexing was getting all the attention.

It is a clever concept that has been mass produced by Wall Street: "personalized" portfolios, tax efficiency, replication of benchmarks. I get the appeal. But when you look deeper, you find a lot of holes, unanswered questions, and dormant portfolios. It is a service that diminishes over time, not ongoing high touch investment management.

That is when it clicked.

What we created, intentionally or not, was the next evolution of this idea.

Without intending to compete with direct indexing, we took its best parts—tax awareness, index alignment, transparency, and customization—and combined them with what has been missing: conviction, intelligent oversight, and ongoing tax management.

If you want to hear how we have turned Direct Indexing's best features into a high-touch, conviction-oriented, investment solution, we would welcome a conversation.

Disclosures

Cap Six offers investment advisory services and is registered with the U.S. Securities and Exchange Commission ("SEC"). SEC registration does not constitute an endorsement of the advisory firm by any regulatory authority, nor does it indicate that the advisory firm has attained a particular level of skill or ability.

The performance data shown is that of a composite portfolio for each Cap Six Advisors, LLC ("Cap Six") proprietary investment strategy, calculated using the performance of all portfolios that are invested in accordance with the strategy indicated. The performance data shown is calculated on a total return basis and is presented net of all fees and expenses, including investment advisory fees and transaction costs, and includes realized and unrealized gains and losses and the reinvestment of dividends.

While Cap Six believes the information to be correct, no representations or warranties whatsoever are made by Cap Six or any other person or entity as to the accuracy of the data shown, the future profitability of a strategy, or the results of making an investment. The performance data shown is not an estimate of any specific investor's actual performance, which may be materially different from such performance depending on numerous factors. Individuals are urged to consult with their own tax or legal advisers before making any investment.

This article is general in nature, not directed or tailored to any particular person, and is for informational purposes only.

This information is not to be shared, distributed, reproduced, or otherwise used, in whole or in part, for any other purpose or by any other person without the written permission of Cap Six. It should only be used by sophisticated investors who are knowledgeable of the risks involved.

Neither this brochure nor any of its content is offered as legal, tax, or investment advice and should not be deemed as investment advice or a recommendation to purchase or sell any specific security.

While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented.

Neither Cap Six nor any of its advisers, officers, directors, or affiliates represents that the information presented herein is accurate, current, or complete, and such information is subject to change without notice.

No representations or warranties whatsoever are made by Cap Six or any other person or entity as to the future profitability of a strategy or the results of making an investment.

Individuals are urged to consult with their own tax or legal advisers before making any investment. Please refer to Cap Six's Form ADV for full details on investment strategies and risks.

Any investment is subject to a high degree of risk, including the possible loss of the entire amount of any investment. Individual investor's results will vary.

Past performance is not a guarantee of future results.

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