June 16 (Bloomberg) -- Arrowpoint Partners, the Denver- based firm founded by former Janus Capital Group Inc. manager David Corkins, was chosen to run a piece of the $12.4 billion Vanguard Explorer Fund.
Chad Meade and Brian Schaub, who left Janus to join Arrowpoint in May 2013, will manage 4 percent of the fund, Valley Forge, Pennsylvania-based Vanguard Group Inc. said today in a statement. The pair have worked together for more than 12 years specializing in investing in small and medium-sized companies and currently oversee the $2 billion Meridian Growth Fund for Arrowpoint.
Arrowpoint “features a talented and experienced investment team that emphasizes minimizing downside risk, while taking a long-term view,” William McNabb, Vanguard’s chief executive officer, said in the statement.
Corkins started Arrowpoint in 2007. It managed $5.8 billion as of March 31, according to the firm. The Meridian Growth Fund returned 13 percent in the past year, trailing 97 percent of competing funds, data compiled by Bloomberg show.
Vanguard, known for its low-priced index-based mutual funds and exchange-traded funds, uses multiple outside managers to run 17 of its active U.S. equity funds. The majority of assets in the Explorer Fund is run by Wellington Management Co. and Kalmar Investments.
The Explorer Fund, a small-cap fund, returned an annual average of 20 percent over the past five years, beating 70 percent of rival funds. Vanguard oversees about $2.64 trillion in U.S. mutual fund and ETF assets, the company said.