Media Super has invested in two high return seeking Australian funds managers after researching the domestic market for the past year.

The $2.6 billion industry fund invested in a market neutral strategy run by Fortitude Capital. Media Super appointed Australian equities manager Merlon Capital Partners to exclusively run a “low-beta” strategy.

Jon Glass, chief investment officer with Media Super, says the two investments comprise Media Super’s “alpha opportunities” portfolio and are based on equity investments.

Glass is searching for another alternatives manager to include in the portfolio. He is being assisted by JennHarding from Harbridge Investment Partnerships, which performs due diligence on boutique funds managers, and asset consultant Frontier Investment Consulting.

Glass will not reveal how much money is invested in the strategies but told Investment Magazine last year that Media Super aims to invest up to five per cent of its assets in alternatives strategies managed by Australian funds managers.

He focuses on domestic alternatives managers before searching offshore. It is more likely that a medium-sized fund such as Media Super can develop deep relationships and strike beneficial investment terms and fees with talented Australian managers, Glass says.