Media Super, a $2.7 billion Australian superannuation fund, said it plans to invest about 5% of its AUM in domestic hedge fund managers. Up to $130 million will be invested in about six managers, with the first allocations expected in early 2011.
Preference will go to equity-based strategies focused on Australia or overseas markets. Emerging managers with track records of under three years will also be considered. Media Super last year redeemed more than $90 million in fund of funds allocations following a review of its programme, and indicated that it would make direct investments in individual managers.