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Opalesque Exclusive: Gargour`s LNG Capital has strongest month since inception, says managers` trading experience gives edge The LNG Special Situations Fund posted the strongest month since inception with a +3.86% net gain. London based LNG says “this superior return is the outcome of both our team’s experience in trading through difficult and uncertain markets (having posted positive returns in 2001-2002) and our recent and current negative view on the credit markets caused by, amongst others, the US sub prime, housing, asset price inflation and liquidity crunch overhang, hence our adoption of a neutral to short bias in our portfolio.

Our managers believe that recent events signal the beginning of an opportunity to generate profits through short positions in several key sectors and we are increasing our allocation to the stressed sub strategy as market conditions have lead to exploitable dislocations. We believe that companies will begin to have reduced liquidity and will begin to breach lending covenants as lending concerns spread through the corporate financial sector. The increased cost of funding combined with continued risk aversion will lead, in the not too distant future, to opportunities in distressed investments and the managers have identified several key sectors and companies where we believe these opportunities will arise.”

The fund was launched in November 2006 and was up +2.12% for the two months that year. YTD (through July) 2007 is +1.86......................

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