Robert Scott and his daughter, Wendy Barker, each has a knack for growing assets.
Mr. Scott retired July 1 after 16 years as executive director of the Public Employees' Retirement Association of Colorado, Denver. During his tenure, the fund grew to more than $28 billion from $4 billion.
Ms. Barker, senior vice president and portfolio manager for the TCW Group, Los Angeles, developed a specialized large-cap equity approach, which has grown from an idea to more than $1.7 billion in just four years.
"It's a product she developed; I did spend some time talking with her about it, but I'm certainly not responsible for it," Mr. Scott said.
Ms. Barker learned the investment business from her father growing up in Colorado.
"She looked at what I did and decided that was what she wanted to do," said Mr. Scott, whose background in accounting provided his daughter "the bigger picture issues of finance."
The strategy developed by Ms. Barker is a risk-controlled, style-specific approach to large-cap. "Most large-cap managers underperform their benchmarks. We asked why, and came up with three reasons. First it is a highly efficient market. Second, the large-cap market is very concentrated in a few names. The top 20 names in the BARRA Growth index represent 60% of the index and nearly 50% of the index is in technology, one big reason managers don't beat the benchmark. Third, and perhaps most important, by definition active managers do something different," she said.
"Some of my peers get too far away from the index and . . . bet against the best companies in the index. We are not closet indexers but we embrace the efficiency, concentration and the high quality of the index," she said.
Another unique characteristic of Ms. Barker's approach is her willingness to include a half-dozen or so midcap growth companies in the portfolio.