Qantas Superannuation Ltd. has sold its 50 per cent stake in Constellation Capital Management Ltd. to the management of the $700-million Australian stock fund manager for an undisclosed amount.

“As a result of a strategic review, Qantas Super no longer thinks it’s good to do private equity investment,” says Doug Little, founder and managing director of Constellation.

Qantas invested in Constellation when it was formed in 1999 as a value investor in Australian shares. Over the past 10 years the fund manager’s gross annual returns have been 2 per cent above the S&P/ASX 300 Index.

Constellation employs an investment team of six.

“We’re very keen to grow the business,” says Little. “There is significant capacity to grow funds under management.”

Constellation has a stake in Qantas.

“We have a modest holding,” says Little. “There are a number of headwinds for the business and they are working their way through them.”