William Gurner, manager-trust investments, at Federal Express Corp., Memphis, Tenn., who oversees $1.9 billion in defined benefit assets and about $1 billion in 401(k) assets, will resign effective Dec. 31 to start his own manager-of-managers firm.
Sector Capital Management L.L.C., his new firm, also in Memphis, will offer equity management based on an approach he is using at Federal Express. Under it, Sector Capital will try to beat the market by confining 10 managers to 10 industrial sectors of the Standard & Poor's 500 Stock Index.
Each manager will run a particular sector fund exclusively. Sector Capital will retain discretion to fire and hire managers.
The goal of the managers will be to beat the return of their industrial sector.
Mr. Gurner said the firm will offer separate accounts and, for smaller clients, a commingled fund in collaboration with Northern Trust Co.
He said the firm will open its doors at the beginning of the year, but won't begin to manage money until its recently filed registration to become an investment adviser is approved by the Securities and Exchange Commission.
At Federal Express' defined benefit plan, $614 million of the $850 million in U.S. equities is managed in the sector strategy.
Federal Express hasn't named a successor.
