Boutique asset manager Alpha Fund Managers has awarded a mandate to BlackRock's Australian Equitised Long/Short strategy.
The mandate was for the $60 million Alpha Australian Blue Chip Fund and replaced a similar offering from Lodestar Capital Managers, Alpha portfolio manager Matthew Zschech said.
Lodestar, part owned by nabInvest, was terminated because BlackRock suited the multi-manager fund better, Zschech said.
"It was nothing to do with the quality of Lodestar; it was more to do with the strategy alignment of the Alpha Australian Blue Chip Fund," he said.
"The quality of BlackRock's team, its global research capability, global trading platform and leading risk management capabilities were aspects we took into account in choosing to add this strategy to our line-up."
The Alpha Australian Blue Chip Fund has around $60 million in assets and has also invested in funds offered by Greencape Capital, Bennelong Funds Management and Equity Trustees.
BlackRock managing director and head of scientific Australian equities Mike McCorry said the BlackRock Australian Equitised Long/Short strategy was designed to deliver 8 per cent return above the S&P/ASX 200 by exploiting market inefficiencies via a systematic research-driven approach to investing.
