Apostle Asset Management

Apostle Aurora Hedged Equity Offshore Fund

Investment Objective

The Apostle Aurora Hedged Equity Offshore Fund’s objective is to generate consistent long-term capital appreciation through the use of a multi-manager, single strategy investment philosophy. The Fund allocates its assets among a diverse range of investment managers implementing hedged equity strategies. (i.e. equity long/short) in a variety of industries, market segments, and/or geographical areas.

Primary Investments

The Fund is a feeder for the Aurora Hedged Equity Offshore Fund Limited, (“the Underlying Fund”). Generally, the Underlying Fund will allocate no more than 10% of its total assets in any single portfolio entity or advisory account, or more than 25% with any single portfolio manager.

Style

Fund of Hedge Funds.

Investment Philosophy

The Underlying Fund allocates its assets primarily among a select group of experienced portfolio managers, selected for their experience in implementing long/short equity strategies in a variety of industries, market segments, and/or geographical areas. The Underlying Fund’s risk profile includes direct equity exposure (both long and short), moderate correlation with broader equity market indices and moderate volatility over a full market cycle.

Process

The Aurora Hedged Equity Strategy utilises a “single strategy, multi-manager” approach focusing primarily on hedged equity trading strategies. Managers are segmented into three specialties: Generalists, Sector, and Geographic Specialists. Each sub-manager is attempting to generate alpha in a chosen market segment/s by taking a fundamental long/short approach. It then becomes the role of the portfolio managers to actively monitor the overall portfolio and assess the individual underlying managers to find areas/sectors of opportunities where alpha generation is the greatest.

The Fund uses no leverage. The Investment Manager may use leverage in the Underlying Fund to a limited extent and leverage is used by the portfolio managers within the Underlying Fund. The Underlying Fund currently is a party to a committed, secured credit facility which provides liquidity to the Underlying Fund. The total indebtedness of the Underlying Fund from this facility is generally limited to 30% of its total net assets at the time of making a draw down. The costs associated with the committed credit facility and the borrowings thereunder are borne by the Underlying Fund.

Currency

The Fund invests in the USD share class of the Underlying Fund, but is denominated in AUD. The Fund is therefore exposed to movements in the Australian dollar.

Management Fees

Available upon request.

Vehicle

Fully distributing wholesale Australian Managed Investment Scheme. The Fund has monthly valuations. Applications may be made monthly and redemptions will be processed quarterly (subject to notice periods disclosed in the Information Memorandum). Apostle Asset Management Limited acts as Responsible Entity.

Investment Manager

Aurora Investment Management L.L.C. (formerly Harris Alternatives L.L.C) is the investment manager of the Underlying Fund.

Portfolio Team

Three portfolio managers supported by research and quantitative investment professionals.

APIR Code

IAM0003AU

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