INVESTING/PORTFOLIO STRATEGIES

Burroughs Wellcome greets Martingale as low-volatility manager

Burroughs Wellcome Fund, Research Triangle Park, N.C., hired Martingale Asset Management to run $45 million in an active domestic large-cap low-volatility equity strategy, confirmed Ken Browndorf, senior asset and accounting manager with the $650 million foundation.

The money was parked in a domestic large-cap core equity index strategy run by custodian bank State Street Global Advisors as foundation officials worked to reallocate risk within the fund's large-cap equity exposure, said Mr. Browndorf.

The fund is looking to “spend the risk we're saving” with the transfer of that $45 million to Martingale's low-volatility strategy by moving money now parked in a domestic large-cap growth index fund to a higher-tracking-error, actively managed growth equity strategy, he said. Details of that growth equity move have not yet been worked out.

Mr. Browndorf said the foundation's investment staff studied low-volatility strategies for close to a year before hiring Martingale.

The foundation supports biomedical science and related research.