Litman/Gregory Fund Advisors hired Brandywine, Ariel, FPA Funds and Strong Capital Management as subadvisers of the new Masters' Select Smaller Companies Fund, which will open June 30. The fund was registered three years ago with the SEC, but Litman/Gregory officials said in a statement that it was harder than expected to select a group of small-cap managers capable of managing a concentrated portfolio that were accepting new business and didn't charge excessive fees. The fund will be closed when it reaches $300 million to $450 million.
Each manager will run about 25% of the fund. John Rogers at Ariel and Bob Rodriguez at FPA will manage their portions in active U.S. small-cap value stocks; Bill D'Alonzo at Brandywine will manage his allotment in active U.S. small-cap growth stocks; and Dick Weiss of Strong will invest in active U.S. small-cap "growth at a reasonable price" companies.