The MM&E Capital Investment Trust No. 2 recorded a small gain of +0.36% in February, and is now up +0.58% for 2009.

The Fund profited from the takeover of Pure Energy, which both Arrow Energy and BG Group PLC are contesting, as well as the successful bid for Incremental Petroleum by TransAtlantic Australia. Convertible notes issued by St George as a result of its takeover by Westpac also benefited the Fund. Takeover activity continued throughout February, with bids for Gloucester Coal and Oz Minerals coming late in the month.

The Pengana Emerging Companies Fund was down -1.7% in February, while the S&P/ASX Small Industrials Accumulation Index was down -10.3%.

The manager credited this good result to the Fund's risk averse strategy, avoiding econonmically sensitive stocks, as well as those that are cheap but have uncertainty surrounding their balance sheets and earnings. The Fund's portfolio is currently made up of defensive stocks with good medium to long term prospects, however in a market focussed on the short term the manager believes this is not being rewarded. Individual stocks that performed well were Thinksmart, ASG Group and MacMillan Shakespeare, offset by losses on Duet, Sonic Healthcare and Spark Infrastructure.

Platinum's suite of funds struggled in February with the best, their International Technology Fund, limiting its losses to 2.1%. After that the next best funds were the International Brands Fund and International Fund which both lost 5.6%, through to their worst performer, the Unhedged Fund, which fell 8.6%.

The only Platinum Fund to have achieved a positive return for the last twelve months is the 4.8% generated by the Japan Fund, but increasingly difficult economic conditions in Japan saw the fund lose 7.9% in February.

Platinum is largley owned by staff and relies on joint ventures for distribution through companies such as MLC Investments in Australia and Optima Fund Management in New York.

The Elstree Enhanced Income Fund lost -8.24% in February, including a -2.5% loss on a further markdown on the unlisted AXA note currently owned by the Fund.

This result brings the Fund's 12 month return to -33.23%. The manager however was encouraged by signs that the underlying issuers of securities held by the Fund are taking steps to stabilise their balance sheets. This was done mainly by selling assets or raising equity, or both.

The Attunga Enviro Opportunities Fund was down -4.61% in February, down on its +11.12% return in January. Attunga’s Agricultural Trading Fund was also down on its January result, up +0.18% after gaining +4.98% last month.

Cooler weather, apart from one hot day in Victoria, kept electricity prices and volatility low during February, which was the main factor in the Enviro Opportunities Fund’s negative result. February also saw renewed interest in the proposed emissions trading scheme, with opposition parties in the Senate announcing an enquiry into the scheme a week after the Government’s enquiry was cancelled. The manager believes this regulatory uncertainty will create volatility, and therefore opportunity, in power markets throughout 2009.

The lack of significant fundamental news on agricultural markets in February drove the Agricultural Trading Fund’s flat result. Gains were made on cross commodity spreads on soft and hard wheat, as well as carry trades in canola and wheat. Mark to market losses were made on volatility spreads between canola, bean oil and corn.

The MM&E Capital Takeover Target Fund was up +0.28% in February, after posting a loss of -1.40% in January. This result came about while the S&P/ASX 200 lost -5.5% over the same period.

Discounted capital raisings, such as Suncorp-Metway, as well as adhering to stop loss limits helped drive the Fund to its positive result. Negative results came from holdings in Insurance Australia Group, Healthscope and Caltex.

The Austral Equity Fund recorded a small loss of -0.04% in February, following on from a +0.74% gain in January. Due to poor interim company reports and a lack of forward guidance, as well as often misleading disclosures regarding capital raisings, the Fund remained lightly invested.

During February the Fund held significant amounts in cash (69%) and short term investment grade corporate credit. More specifically, the Fund continued to hold Macquarie Airport Tickets, which fell later in the month, while the proceeds from its CBA Perls II will be received shortly.

The Apostle Loomis Sayles Senior Loan Fund, which mainly invests in US senior loans, posted a return of +8.29% in January, a record for the Fund.

The manager attributed the excellent result to a rally in loan markets, which in previous months had been dragged down by forced selling from leveraged vehicles. This appeared to stop in January, allowing bargain hunters to buy up across all credit sectors. The manager also attributed the result to the generally high quality of loans that make up the Fund's portfolio, loans that will most likely survive challenging market conditions in 2009.

Looking ahead the manager expects prices to remain low, based on continuing poor economic news, although there will be an influx of new capital into the sector.

The Pengana Property Securities Fund was down -9.1% in January, after ending 2008 down -57.2%.

The Fund closely mirrored its benchmark, the S&P/ASX 300 Property Accumulation Index, which was down -9.6%. The Fund's portfolio remained positioned around larger, high quality business models with limited balance sheet risk, including CFS Retail, Westfield and Stockland. The Fund also began to take postions in regional property markets such as Hong Kong and Singapore, which present a lower risk profile. Cash holdings were increased to over 2% during the month, with the intention to further increase this position in future, due to the damaging affects of ongoing capital raisings on confidence.

Pioneer Global Investment (Australia) has declined to provide performance updates on their three funds since October 2008. The manager has advised that they are undergoing a restructure, but declined to provide any further information.

For the 10 months up until October last year, the Momentum Global Long/Short Strategy fund had lost 24.45%, the Momentum AllWeather fund was down 17.56% and the Restructuring Fund lost 20.7%.