Updates

Asiahedge April 2009

ASIAHEDGE APRIL 2009 ISSUE

PERFORMANCE- QAM ASIAN EQUITIES FUND

Weightings on the long side during the latter half of the month helped the QAM Asian Equities Fund to gain 12.13% for the month. The quant fund was 32% allocated in Japan, 28% in South-Korea and 18% in Australia with banks, mobile telecoms and exploration and production the top three long side sectors. The fund was short the MSCI Asia Pacific Index, but the fund lost 14.37% on this short hedge, offsetting some of the 26.51% gain on the long portfolio of approximately 60 stocks, explains QAM's Frank Holle.

Although markets have been very sentiment-driven over the past few months, Holle notes that fundamental factors are having a bigger impact on share price performance currently and is optimistic about the fund's performance prospects, as QAM's factor models do well when in fundamentals-driven markets. In the 2,000-strong universe of Asia stocks the fund watches many inefficiencies have been created over the past year, which bodes well for QAM's strategy, says Holle.

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