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Melbourne based Australian Long Short Equity Manager, Eclectic Capital was +1.81% for the month of September 2007. Eclectic is now +10.81% Year to Date. Eclectic now have just on a 7 year track record and are annualising in line with the ASX 500 (10.92% v's 11.11%) with half the volatility.

In an investor communication obtained by Opalesque, Eclectic points out that in September the ASX 500 closed up 5.3%, "making it one of the strongest months we have seen. The index rallied 400 points in the last 10 ten trading days as offshore funds found Australian dollar denominated equities attractive against a back drop of a falling US Dollar. Commodities remained good with Oil and Gold both stand outs again boosted by the weak US$. Gold rallied 10% from US$684 to US$750 and oil also added 10% moving from US$74 to US$81.60.

Worries about the sub prime mortgage market seem to be passing as banks confess to their losses which seem to be less than the market expected. The Fed also came to the party by aggressively easing rates by 50 bps.

The biggest sentiment change this month was in Iron Ore which caused Mt Gibson Iron to add 55% and Fortescue add 40%. Local economic conditions remain positive with continued all time low unemployment, inflation at the top end of the range but within the RBA’s comfort zone. Meanwhile the resource boom continues at full tilt. at full tilt. Contact: ......................

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