Brian Schaub and Chad Meade, stock pickers who quit Janus Capital Group Inc. (JNS) this month, have joined Arrowpoint Partners, a Denver-based hedge-fund firm co-founded by their former colleague David Corkins.
The pair will focus on investing in small and medium-sized companies, which is their area of expertise, Corkins said today in a telephone interview. Schaub and Meade managed two of Janus’s best-performing equity funds, the $4.9 billion Triton Fund and the $2.3 billion Venture Fund, until the firm, also based in Denver, announced their departure May 13.
“All of Arrowpoint is excited to bring a world-class team into the firm,” Corkins said. “We have a long history with Chad and Brian and their research process is in line with ours.”
Arrowpoint manages about $2.2 billion in assets, according to its website. Other former Janus employees working at Arrowpoint include co-founder Karen Reidy, portfolio managers Tony Yao and Minyoung Sohn, and Chief Operating Officer Rick Grove, according to the firm’s website.
Schaub and Meade’s departures were the highest-profile exits at Janus since Richard Weil took over as chief executive officer in February 2010. The pair made Triton Janus’s best stock fund in the five years through May 10, returning an annual average of 12 percent and beating 98 percent of competing funds. They also led Venture, which focuses on small companies, to 9.8 percent annual returns over five years, beating 87 percent of rivals. Ron Sachs, former manager of the $8.6 billion Janus Twenty Fund (JAVLX), will leave the firm May 31.
Janus, known for its concentration in technology stocks that led to a rapid rise and fall when the sector boomed then crashed in the early 2000s, is diversifying away from domestic equities as it seeks to stanch investor withdrawals. The firm is opening funds that shield investors from market volatility and spread risk across asset classes. Investors have pulled money from Janus for 15 straight quarters amid poor performance and a broad shift to index-based investments and bonds.
Janus said last month its first-quarter profit rose 24 percent compared with a year earlier after stock-market gains helped boost assets to $163.8 billion.
Corkins co-founded Arrowpoint in 2007, the same year he left Janus, where he managed the Janus Fund. (JANSX) His market-beating returns helped revive the company after its assets fell by more than half following the collapse of technology stocks in 2000 and 2001.
Arrowpoint provides investment-management services to wealthy investors and institutions through separate accounts and limited partnerships, according to a filing with the U.S. Securities and Exchange Commission.
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