A new asset management company targeting institutional investors for defined-benefit retirement plans has been formed in Boston.

Arrowstreet Capital is being launched with a minority equity stake from Putnam, Lovell, de Guardiola & Thornton, an investment bank in San Francisco.

The new firm's principals are its major shareholders, a spokesman said.

Arrowstreet is to use a "structured investing" approach, which combines human judgment to set investment parameters with quantitative methods to handle investment management.

Arrowstreet's founding partners are Bruce Clarke and Peter Rathjens- formerly the chief executive officer and the chief investment officer, respectively, of Panagora Asset Management-and John Campbell, a professor of economics at Harvard University.

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