Vanguard Group has launched the Vanguard Market Neutral Fund. The fund, created through the recent reorganization of the Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, is expected to appeal primarily to endowments, foundations, and other institutional investors, the company said.
Axa Rosenberg Investment Management and Vanguard Quantitative Equity Group serve as the investment advisers for the new fund, according to Vanguard.
Its investment objective is to provide long-term capital appreciation while limiting exposure to general stock market risk.
The fund’s long/short, market-neutral investment strategy is an absolute return investment approach seeking performance that exceeds the returns of three-month Treasury bills, Vanguard said.
The product requires a minimum initial investment of $250,000 for investor shares and $5 million for institutional shares.
Axa Rosenberg, an independently operated subsidiary of Axa SA, manages $142 billion of total assets. Vanguard Quantitative Equity Group oversees $25 billion of active quantitative equity fund assets.
Vanguard Group manages nearly $1.3 trillion of mutual fund assets in the United States, including more than $325 billion of employer-sponsored retirement plans. It offers more than 140 funds to U.S. investors and 180 to foreign investors. a