Grantham, Mayo, Van Otterloo & Co. is reorganizing its asset allocation division that will result in several senior executives leaving the firm, said a letter from GMO to clients obtained by Pensions & Investments.
“We have decided to focus our global equity team’s efforts on our quantitative investment process,” the letter said. “As a result, we have discontinued the global equity team’s fundamental stock selection efforts in the portfolios they manage.”
The letter added that “the asset allocation team will continue to inform the top-down regional weights of the portfolios and implementation will move toward our quantitative investment process.”
As a result, Neil Constable, who was head of the global equity team’s quantitative research effort since 2012, will become head of the global equity group, effective July 1.
Meanwhile, David Cowan, co-head of the global equity team, and Chris Fortson, head of fundamental research for the global equity team, will leave the firm on June 30.
Additionally, Sam Wilderman has decided to leave the firm at the end of the year. He will stay on as co-head of asset allocation and co-head of fixed income through the end of 2016 to ensure a smooth transition, the letter said.
Effective Jan. 1, Ben Inker, currently co-head of asset allocation, will become the sole head of asset allocation.
This reorganization follows the news in May that GMO named Margaret “Peg” McGetrick interim CEO, replacing Brad Hilsabeck, who is resigning effective June 30.
GMO spokesman Tucker Hewes could not be immediately reached for comment by press time.