Investment consultant Russell has gone down the high conviction path and hired two recently formed boutique managers.
The firm has appointed Karara Capital, which was formed this year by ex-Invesco managers Rohan Walsh and Luke Sinclair, to run 10 per cent of its Australian shares fund.
Russell said it had appointed Karara to provide more consistent alpha potential while maintaining the style neutrality of the overall fund.
It has also hired quant fund Plato Investment Management (Plato) to run 15 per cent of its Russell Australian Opportunities Shares Fund.
Plato was formed in 2006 as the first member of former Perennial chief Ian Macoun's fund incubator Pinnacle Investment Management.
The portfolio is run by former State Street fund manager Don Hamson.
It will run a 130/30 active extension strategy.
