Frec is a financial technology company founded in 2021 and based in San Francisco. The firm specializes in making direct indexing - an investment strategy where clients hold individual stocks to mimic an index - accessible and affordable for everyday investors. Its platform focuses on tax-aware investing, using automation and algorithms to manage portfolios, optimize risk, and harvest tax losses.
The company offers several products, including Classic Direct Indexing and Long-Short Direct Indexing strategies, which allow for holding individual stocks within major indices with both long and short positions. It also provides tools for portfolio diversification and offers portfolio lines of credit secured by investment holdings. According to historical backtesting, the firm's strategies could potentially harvest capital losses amounting to nearly 45% of a portfolio's value over a ten-year period.
Frec has scaled to manage over $1 billion in customer assets under management. Its work spans technical domains such as portfolio optimization, risk management, and advanced algorithm development within the wealth management and financial services industry.
