Piedmont, Calif.-based Quintara Capital Management has launched a small-cap value fund that will compensate its sub-advisors based on how well they perform compared to the Russell 2000 Value Index.
The Quintara Small Cap Value Fund will be managed by three sub-advisors who will select up to 18 stocks each. The fund will be co-managed by a bevy of managers who oversee small-cap portfolios at ICM/Isabelle, Oakmark and Third Avenue/MJ Whitman.
The sub-advisors will be compensated with what is known as a fulcrum fee, or compensation that increases or decreases depending on whether their performance outpaces or lags behind the index.
"Because our ultimate goal is to outperform the indices or benchmarks, we have designed a performance-based compensation plan that will reward managers if they do well for investors," said Matt Sadler, who is the Quintara fund familys CEO and a former Fidelity executive.
The no-load product will be available through Quintara or through fund supermarkets via brokerage firms, the company said in a statement.