The manager noted caution regarding the outlook for the world's economies, and this view is reflected in their exposure to equities in general. The manager also noted concerns surrounding the sustainability of the stimulus-infused Chinese economy, which combined with a further deterioration in Global economic trade saw commodity markets weaken.

1 year return: +19.17%. Annual (Feb.2006): +17.2%

Apeiron's positioning at month's end was long USD/JPY, Wheat, Gold and Natural Gas, and short the S&P500 and SPI200.

Apeiron utilises strategies in futures and foreign exchange markets and generate forecasts within a discretionary based framework while managing risk with a quantitative capital allocation model. The manager defines investment themes within a fundamental economic framework, and within these themes looks to identify markets that are over or under valued.

These strategies have returned Apeiron's investors an annualised return of 17.20% since inception in February 2006, with a monthly win/loss ratio of 68%.

Referring to the fact that the ASX accumulation index rose 3.93% in June, the manager noted that their performance had been adversely affected by large positions in RIO Tinto (rights issue) and Nufarm (profit downgrade). On the positive side positions in Atlas Iron and JB Hi-Fi made positive contributions.

1 year return: +0.92%. Annual (May.2006): +15.5%

Net market exposure was relatively steady at 54%, 64% long and 10% short.

Herschel's Australian equity long short fund has approximately $15m in FUM, and has an annualised return since inception in May 2006 of 15.5%.

St Helens' June performance produced positive returns from both longs (+ 5.10%) and shorts (+0.40%), with the best performing sectors being Materials (+ 2.70%), Financials (+ 1.20%) and Telcos (+ 1.00%).

Ailsa: 1 year return: +28.36%. Annual (Jan.2002): +13.11%

Arran: 1 year return: +27.8%. Annual (Aug.2004): +9.69%

Commenting on the performance, the manager said that in June and into July markets were dominated by the approaching US reporting season, where they believe that much of the bad news is already factored in, and thus should see markets moving cautiously higher. They also noted that economic data in June continued to show signs of improvement, with consumer sentiment rising 12.7% higher (now up 18% on pcp), the second largest monthly rise on record, and new motor vehicle sales rising and building approvals exceeding market expectations.

St Helens was established in January 2002, initially managing a local Australian fund and managed accounts, before establishing the Arran offshore fund in the Caymans in August 2004. Total St Helens group FUM is approximately $100m with an annualised return since inception of +12.77%.

June proved to be a very difficult month for Bennelong's Australian long/short equity fund due mainly to their defensive positioning which is premised on a cautious macro view. In addition, the manager experienced a large draw down on two of their positions in the volatile materials sector. The manager noted concerns that some of the main current drivers of domestic demand (the wealth effect associated with firm residential property values and raw material exports to China as it builds stockpiles) are not sustainable and have been overplayed by the market.

1 year return: +4.94%. Annual (Feb.2002): +20.30%

Bennelong was established in February 2002 and has a compound annual return since inception of 20.30%, including a positive return of 11.95% in 2008. The manager has recently seen a return of capital inflows, following Fund of Fund liquidity based redemptions in 2008, and FUM currently stands at A$60m.

Of the four funds run by Attunga Capital their Enviro Opportunities Fund was the top performer in June. The fund gained +1.6% for the month and has recorded a solid gain of +12.31% for the year so far.

1 year return: +2.61%. Annual (Aug.2006): +39.4%

The manager reports that electricity prices have been relatively low due to winter in NSW being comparatively mild and opportunities remain for generating better returns if there is greater market volatility through the middle of winter.

June returns for Attunga's other funds were: Power & Enviro Fund (offshore), +0.45%; Agriculture Trading Fund, +0.6%; and Agriculture Trading Fund (offshore), +0.47%.

Blue Fin Capital's Managed Commodities Fund continues to outperform its benchmark after achieving a return of +1.66% in June, compared with CSFB's Managed Futures index which rose by only +0.85% in the month.

1 year return: +2.97%. Annual (April 2007): +11.97%

The fund uses a managed account structure and uses a momentum based trading strategy in the major North American commodities futures markets determined by a quantitative system.

All three funds run by MM&E Capital recorded positive results in June with the Takeover Target Fund reporting the largest increase of +1.66%. The manager's other two funds, Investment Trusts 1 and 2, each reported a gain of +0.71%.

Takeover Target 1 yr return: -8.9%. Annual (Aug.2005) +8%
Trust #1 1 yr return: -2.6%. Annual (July 2002) +8.1%
Trust #2 1 yr return: -2.7%. Annual (July 2004) +7.4%

The Takeover Target fund benefitted from the sale of a holding in Caltex following the company's profit upgrade as well as improving value in Seek and Asciano. During the month the fund took new positions in RIO, Eastern Star Gas and Fairfax Convertible Preferences.

DV01 Mechelle Pty Ltd gained +2.7% in May, following on from strong positive returns in March and April.

1 yr return: -11.73%. Annual (Aug 2006): +12.94%

The company also hit its high water mark in May, previously set in June 2008. Net long exposure has increased significantly from September 2008, from 12.2% to 73% currently. The company's 2009 return now stands at +18.16%, however this follows on from -21.23% in 2008 and with a current risk level (annualised standard deviation) of 22.05%.

The MQ Asia Long Short Fund was up +4.26% in May, driven by alpha generation as the Fund's correlation to the MSCI Asia Pacific Index for May sat at -0.01%.

1 yr return: -5.89%. Annual (Oct 2005): +9.66%

Although most Asian equity markets performed strongly for the month, given the Fund's observed beta was almost zero in this period the manager has attributed the Fund's performance to their own alpha generating strategies. This result also puts the Fund back in the black for 2009 (+0.96%).

The manager is looking to gradually increase gross exposure in the months ahead, as volatility declines and there are indications that the Fund's investment processes are generating alpha again.

The Platypus Australian Long/Short Fund lost -6.18% in May, driven by losses on short positions in the materials sector.

1 yr return: -18.98%. Annual (Oct 2005): +2.4%

The Fund, which is managed by Platypus Capital Management, was hurt by the ongoing rally of base metal prices since the start of 2009, which was reflected in the share prices of materials companies (the sector gained +6.58% in May). The Fund has been short in this sector for some months, which provided positive returns in late 2008 and early 2009, however more recently this strategy has been dragging down performance. Although short positions are being reduced, this is being undertaken gradually therefore most of the losses have stemmed from long standing positions.