Mutual fund giant Vanguard, best known for its indexes expertise, is planning its first participation in a long/short fund, according to Dow Jones.In conjunction with Charles Schwab Investment Management, Vanguard has proposed reorganizing its $21 million Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund into a new fund using long/short market-neutral strategy. It will be the first the mutual fund in Vanguard’s line-up to have shorting equities as a significant portion of the investment process.

AXA Rosenberg Investment Management will continue as an investment advisor to the reorganized fund, but the quantitative equity group at Vanguard will also sub-advise a portion of the fund.

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