Frec surpasses $280M and announces long/short direct indexing for everyday investors

We’re proud to announce a major milestone: Frec surpassed $280 million in customer assets, growing 5x over the past year. This growth reflects the increasing demand for tax-efficient, customizable investment strategies that were previously accessible only through high-fee wealth advisors. 

Building off of this momentum, we’re excited to unveil our next offering coming this summer: long/short direct indexing.

What is long/short direct indexing?

Long/short direct indexing allows investors to tailor their index by choosing a tilt. For instance, an investor might want to take an extended long position in growth stocks and a short position in value stocks in the Russell 1000. Frec’s algorithm would build the portfolio by purchasing the individual stocks in the index and apply a 140/40 structure, adding a 40% long extension and a 40% short position. 

Beyond expressing an investor’s market views, this approach creates significantly more opportunities for tax loss harvesting in both rising and declining markets. According to our simulations, a 140/40 direct index can harvest 2.5-3x more losses than a classic direct index. At higher exposures, like 250/150, tax loss harvesting can increase up to 10x the capital losses of a long-only index. 

Breaking down barriers to access

Long/short direct indexing has traditionally been the domain of ultra wealthy individuals with account minimums starting at $1 million. Frec is changing that. 

We’re bringing this powerful strategy to retail investors at just $100,000, no human advisor required. As demand grows for tax-efficient, customizable strategies, it’s time individual investors had access to the same tools reserved for the ultra-wealthy. Frec’s approach prioritizes transparency, control, and risk management, built for today’s investor.

Join the waitlist

If you’re ready to take your investment strategy to the next level, we invite you to sign up on our waitlist for early access.

A comprehensive whitepaper will be shared in the coming weeks, in which we’ll dive deeper into strategy construction, performance simulations, and risk controls. 

Our 2.5-3x more losses for 140/40 direct index results are based on 10-year simulations between 12/31/2003-11/14/2024 with a one-time $1M deposit into a 140/40 long/short strategy as compared to the simulation results of the long only direct indexing of the S&P 500 over 10 years between 12/17/2003-06/10/2022 with a $50,000 initial deposit both harvesting losses on a weekly basis. The results are hypothetical, do not reflect actual investment results, and are not a guarantee of future results. The simulations averaged at the end of year ten resulted in the long/short strategy harvesting 2.5-3x more tax loss savings. The AUM fees were included for both strategies.