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We heard early last month that Australian hedge fund managers Fortitude Capital and Aurora Funds had signed a deal to merge. But, according to Damien Hatfield, partner at Triple A Partners Australia, a firm providing alternative investment intelligence and market research, it is in fact Fortitude Capital, Aurora Funds Management AND Sandringham Capital that merged to form a $570m hedge fund business.

The combined entities, named Aurora Funds Limited, will seek to raise up to $5m by selling a 22% stake in the business via an IPO on the ASX, wrote Hatfield in his monthly newsletter on Monday. The IPO reportedly opened on 13 May.

On completion, the business will be capitalised at $22.5m. John Corr, founder of Fortitude will have a 17% stake, Steuart Roe, Sandringham's founder, will have 24.4%, and Alastair Davidson, Simon Lindsay, Richard Matthews, Oliver Morgan and Hugh Latimer, co-founders of Aurora, will each have 5.79%.

Another major shareholder is Angstrom Assets with 5.9% - owned by MFS Alternative Asset Ltd, which bought a 40% stake in Fortitude before MFS-AA's parent MFS Group imploded in 2008. MFS (l......................

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