Vanguard Group hired Arrowpoint Partners as a subadviser of the $12.4 billion Vanguard Explorer Fund, company spokesman David Hoffman wrote in an e-mail.
Arrowpoint will subadvise on 4%, or about $500 million, of the Explorer Fund’s assets. Funding is coming from reducing the allocations of three other subadvisers on the U.S. equity fund.
After the Arrowpoint hire, Wellington Management will manage 32% of the fund; Kalmar Investment Advisers, 23%; Granahan Investment Management, 17%; Century Capital Management, 7%; Chartwell Investment Partners, 7%; Stephens Investment Management Group, 6%; and Vanguard’s equity investment group, 4%. Allocations to Granahan, Century and Chartwell were reduced.
This is the first Vanguard allocation to Arrowpoint. Chad Meade and Brian Schaub from Arrowpoint will serve as portfolio managers.