VALLEY FORGE, PA — Vanguard announced it will shift the management of its Mid-Cap Growth Fund (VMGRX) exclusively to Tremblant Capital, replacing current advisors Frontier Capital Management and Wellington Management Company. The change reflects a strategic adjustment in advisory oversight for one of Vanguard’s actively managed equity funds.
The transition will result in a modest expense ratio increase from 0.33% to 0.39%. To ease the impact on shareholders, Tremblant Capital has agreed to waive five basis points of its fee for the first year, keeping the fund’s expense ratio at 0.34% during that period. Vanguard noted the fund will remain in the lowest-cost quartile among its peer group.
Tremblant Capital, a New York-based global equity firm founded in 2001 by Brett Barakett, employs a research-intensive, growth-oriented strategy. The firm focuses on identifying companies undergoing what it calls “consequential change”—industry or company-specific shifts that may act as catalysts for long-term cash flow growth and improved valuation.
The fund’s portfolio will be managed by Barakett and Michael Cling, Tremblant’s Co-Chief Investment Officer. Barakett has nearly three decades of investment experience, including founding Tremblant after beginning his career in 1996. He holds degrees from Western University’s Ivey Business School and Harvard Business School. Cling, with investment experience dating back to 1998, joined Tremblant in 2005 and is a graduate of Georgetown University.
By consolidating management with Tremblant, Vanguard aims to align the Mid-Cap Growth Fund with a focused advisory team known for its conviction-driven approach. The move underscores Vanguard’s continued emphasis on pairing active strategies with firms that demonstrate distinct, long-term investment philosophies while maintaining competitive costs for shareholders.
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