Aurora Investment Management is comfortably in the top 20 of the world’s largest funds of hedge funds (FoHFs), managing around $10 billion in FoHFs and segregated accounts.

“We think the future for FoHFs is very bright. In fact I think we are about to embark on a golden age for fund of funds investors,” declares a bullish Scott Schweighauser, chief investment officer of Aurora Investment Management.

“The entire world has transformed. It used to be the case in the old days that hedge funds were very secretive and they didn’t want to talk about what their investment strategy was outside of the context of their own investor base,” notes Schweighauser.

“Now we find it’s in everyone’s interests – in the interests of the hedge fund and investors such as ourselves – to really transmit to the broader world what it is that we do, how we do it, what the edge is, how we make money, how we raise and manage capital so that there is a keen appreciation for the benefits of this type of investment for investors.”

Looking ahead into 2011 Schweighauser sees opportunities abounding. “We think all of our strategies have a lot of potential,” he declares.

Schweighauser is positive about credit strategies as well as long/short equities where he sees “enormous” opportunities.

Macro, too, is interesting. “We live in very interesting times with all the events that are taking place on a global basis especially in the developing markets. Our global managers will be able to take advantage of that,” he says.

Event driven strategies make up approximately 10% of Aurora’s portfolios. Schweighauser thinks the rise in corporate transactions will propel this strategy over 2011 and beyond.

Further reading: Investor profile: Aurora Investment Management