24/08/2011 Author: Elana Margulies

Aurora FoHF to launch managed accounts

Aurora Investment Management, a Chicago-based $11.5bn fund of hedge funds (FoHF) manager, is gearing up to launch two or three separately managed accounts (SMA) by year-end that will in most cases replicate its flagship Aurora LP, a global multi-strategy offering.

According to a source familiar with the plans, the firm is slated to roll out these separate portfolios, all with an investment minimum of $100m, due to demand from institutional investors, including both public and corporate pensions and sovereign wealth funds. The debut of these vehicles marks a continuing trend for Aurora, which has seen the majority of its asset growth come from SMA structures.

Aurora’s creation of a series of a SMA pools comes as global hedge fund allocators have demanded more specialised products such as funds of managed accounts, single investor FoHFs or ‘funds of one’ as they try to secure enhanced transparency and liquidity.

William Keunen, global director at administration firm Citco Fund Services, recently told HFMWeek that investors and consultants have been increasingly working with FoHF providers to build customised portfolios.