| Report Date | 18 May 2011 |
| Manager | Fortitude Capital |
| Fund Name | Aurora Fortitude Absolute Return Fund |
| Strategy | Equity Market Neutral |
| Latest Return Date | April 2011 |
| Latest Return | 1.25% |
| Latest 6 Months | 5.14% |
| Latest 12 Months | 7.09% |
| Latest 24 Months | 12.56% |
| Annualised Since Inception | 9.58% |
| Inception Date | 15 February 2005 |
| FUM (millions) | AU$65 |
| Fund Overview | Aurora Fortitude Absolute Return Fund is a multi-strategy market neutral fund specialising in ASX listed equities and derivatives. The core philosophy is the management of risk through a long volatility overlay incorporating listed equity and index derivatives. The multi-strategy approach includes M&A, Yield, Convergence and Long/Short strategies. The portfolio managers adopt an aggressive approach to managing downside risk whilst positioning the portfolio to benefit from positive alpha. |
| Manager Comments | The Aurora Fortitude fund benefited from exposure to takeover situations in the resources sector, the most significant of which was the board of Equinox Mineral Limited (EQN, +38.1%) recommending a C$8.15 ($A7.86 equivalent), and Mintails Limited (MLI +129.9%), which was subject to an unconditional, on-market takeover bid.
Origin Energy Limited (ORG, +0.8%) benefited from higher energy prices the options book took advantage of this, as well as the end of the rights issue trading.
In the Yield book The Fairfax Media Convertible Preference Securities (FXJPB) were redeemed at month end. This was the portfolio’s largest exposure.
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| More Information | » View detailed profile of this fund |
