Numeric Investors L.P., subadviser of two highly successful stock mutual funds for the Quantitative Group of Funds in Lincoln, Mass., has decided to launch its own no-load mutual funds.
The three funds - Numeric Investors Micro Cap, Numeric Investors Growth, a small-cap fund, and Numeric Investors Mid Cap fund - are expected to be available by midyear.
Langdon Wheeler, president of Numeric, said the firm may resign management of the Quantitative funds as he expects assets to flow into the new lower-cost funds.
This deals a sharp blow to the Quantitative Group, which has $211 million in fund assets including the $127 million in the two subadvised by Numeric.
The Quantitative Group plans to keep offering the two funds and will name a new subadviser or manage the funds in-house if Numeric resigns. The larger small-cap fund, Quantitative Numeric I, is closed to new investors.
Quantitative Group's senior vice president of marketing, Lynn Wickwire, is leaving to market the new funds at Numeric.
Numeric's co-founder and portfolio manager of the funds, John Bogle Jr., is following the path forged by his father, John Bogle at the Vanguard Group of Investment Cos., Malvern, Pa., which offers low-cost index funds.
"We'd like the mutual funds to be very fee efficient for investors. My partner's father's genes are showing through," said Mr. Wheeler.