Vanguard Group hired Sanders Capital as a subadviser to the $35 billion Vanguard Windsor II fund, confirmed Vanguard spokeswoman Amy Chain.
Sanders will oversee about 8.5% of the fund’s assets. Lewis A. Sanders, Sanders CEO and co-CIO, and John P. Mahedy, co-CIO and research director, will manage the firm’s portion of the large-cap value fund.
Mr. Sanders was chairman and CEO at AllianceBernstein before he was dismissed in December 2008; he formed Sanders Capital last year. Mr. Mahedy was chief investment officer of U.S. and North American value equities at AllianceBernstein until October.
Sanders’ portion of the fund is expected to include 35 to 40 stocks.
The Windsor II fund returned 27.1% for the one-year period ended Dec. 31, an annualized -6.3% for the three-year period, and an annualized 0.8% for the five-year period, according to a Vanguard news release.
Ms. Chain said Sanders will be the sixth subadviser to the fund, joining Barrow, Hanley, Mewhinney & Strauss; Vanguard Quantitative Equity Group; Hotchkis and Wiley Capital Management; Armstrong Shaw Associates; and Lazard Asset Management. No existing subadvisers were terminated, she said.
