The $2.6 billion industry fund Media Super has awarded a $30 million mandate to Aurora Funds Management's Aurora Fortitude Absolute Return Strategy.
The product focuses on extracting alpha from the Australian equity market through a range of strategies, including merger arbitrage, convergence trades and options.
"We believe the alpha generation is sustainable over time and is the right investment for these periods of heightened volatility," Media Super chief investment officer Jon Glass said.
"The fund manager has demonstrated their ability to produce steady returns in volatile markets over a long time."
Media Super manages more than $2.6 billion in assets for over 125,000 members.
Aurora recently merged with Fortitude Capital and Sandringham Capital to create an institutional-grade listed manager with more than $500 million of investable assets and 14 staff.
John Corr, the ex-head of proprietary trading for Citi, leads the combined entity's investment team.
The Aurora Fortitude Absolute Return Fund has a six-year track record and produced an annualised return of 9.32 per cent after fees to July 2011.
