BOSTON (HedgeWorld.com)–Fidelity Investments gave up its ownership stake in Geode Capital Management LLC, a unit set up to run quantitative long/short equity strategies.
But the mutual fund giant will continue to invest with the firm, while some Fidelity employees and members of the Johnson Family, which founded the firm, will continue to own a stake in the company, said spokeswoman Anne Crowley.
Geode Capital has US$391 million in its Geode Investors LLC fund, according to a regulatory filing. Geode also will take over management of Fidelity’s passive index funds, which have US$28.8 billion in assets, but will manage them in a sub-advisory agreement, Ms. Crowley said.
Running the now separate firm is Jacques Perold, who also managed Geode when it was a unit of Fidelity. He had worked for Fidelity since 1986. Charles B. McDevitt is Geode’s chief operating officer and chief compliance officer, according to the federal filing.
Ms. Crowley said Fidelity spun Geode off because it didn’t really fit with the philosophy of the firm, which is centered on fundamental active equity management, as opposed to the quant and passive approaches of Geode. “We try to provide a broad product line,” she said.