Media Super, a $2.7 billion Australian superannuation fund, said it plans to invest about 5% of its assets under management 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 locally on Australia or overseas markets. Emerging managers with track records of less than three years will also be considered.
Media Super last year redeemed more than $90 million in fund of hedge funds portfolio allocations following a review of its hedge fund program. The superannuation fund