Fortitude Capital which was voted Australian hedge fund manager of the year in 2008 and 2009, is set to become part of the listed Aurora Funds Ltd following a successful capital raising which will see the combined group list on the ASX on Tuesday, July 13.
Fortitude Capital's Absolute Return Trust (FCART) has one of the most risk averse profiles of all hedge funds in Australia. Since inception in February 2005 it has provided investors with an annualised return of 9.88% with a Sharpe ratio of 1.54. Over a track record in excess of five years Fortitude provided positive monthly performances 88% of the time, with its worst monthly performance being -0.73% and a maximum drawdown of -0.86%.
John Corr, Fortitude's CEO will become the Chief Investment Officer of the new group, whilst Sandringham's founder and major shareholder Steuart Roe will become Aurora's new Chairman and Managing Director. On listing on the ASX Aurora will have a market capitalisation of $19 million and is expected to provide Fortitude with the necessary structure and critical mass to significantly increase FUM, and utilise Aurora's existing strong distribution network to reach both wholesale and retail investors.
