How Vanguard Gains From Firm That Fired Founder Jack Bogle
- Wellington runs six funds for Vanguard that have outperformed
- Walter Morgan, Wellington founder, would become Bogle mentor
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After Jack Bogle was fired by Wellington Management Co. in 1974, he didn’t wash his hands of his old employer. Instead he retained the firm to run money for his startup, Vanguard Group. Today those funds are beating almost all of their peers.
Wellington manages six large active mutual funds with a total of $240 billion in assets for Vanguard. The six have outperformed 87 percent of their peers on average over 10 years, according to data compiled by Morningstar Inc. The Vanguard Health Care Fund is the top-performing U.S. mutual fund over the past 30 years, thanks to Wellington.