Aurora recently merged with Fortitude Capital and Sandringham Capital to create an institutional grade operation with over $500m of investable assets and 14 staff. The investment team is headed up by John Corr, the ex-head of proprietary trading for Citi.
 
The Aurora Fortitude Absolute Return strategy focuses on extracting alpha from the Australian equity market through a range of processes, including merger arbitrage, convergence trades, and option strategies. The Fund aims to exploit market inefficiencies, while having little net exposure to the equity market and having a long volatility skew.
 
Dr Jon Glass, the CIO at Media Super, said “We believe the alpha generation is sustainable over time and is the right investment for these periods of heightened volatility. The fund manager has demonstrated their ability to produce steady returns in volatile markets over a long time”.
 
John Corr said the strategy had attracted interest from a number of other institutions, and the Fund was available as a retail offer on a number of platforms. “We believe our strategy offers investors an opportunity to take advantage of what could be a prolonged period of high volatility.”
 
The Aurora Fortitude Absolute Return Fund has a 6 year track record and has produced an annualised return of 9.32% after fees to 31 July 2011, with every calendar year producing a positive return.

The post Aurora Funds Management wins mandate from Media Super appeared first on AdviserVoice.