Investment manager QIC has dumped WestLB Mellon from its hedge fund manager line-up and increased its allocation to Axa Rosenberg.
The Brisbane-based investment firm on Wednesday announced it had terminated its long/short mandate with WestLB Mellon and added a further $40 million to its long/short exposure with Axa Rosenberg.
Axa has been a part of QIC's Implemented Australian Equities Fund since March 2006.
"A decision was taken to reduce the number of managers in the fund and increase the allocation to the managers we believe will provide characteristics in line with the fund's objectives," portfolio manager Stuart Birkett said.
QIC head of implemented equities Greg Liddell said long/short investments had strong scope for generating alpha streams.
"We still believe there are significant opportunities for generating alpha through investing in long/short strategies in the Australian market and as such our overall allocation to this alpha bucket has remained stable," Liddell said.
"The inclusion of long/short products in the Australian equities multi-manager portfolio provides our clients with a more efficient capture of active return."
QIC is a fund of funds with more than $50 billion in funds under management.
