Direct Indexing Was a Step Forward. We Kept Walking.

Written by Jeff Jorgensen, Chief Investment Officer and Portfolio Manager

When we built Cap Six, the goal wasn’t 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’s 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’d always done them.

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

It’s a clever concept that’s 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’s a service that diminishes over time, not ongoing high touch investment management.

That’s 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’s been missing: conviction, intelligent oversight, and ongoing tax management.

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