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Kirsten Bischoff, Opalesque New York: In May, 2008 the Research Foundation of CFA Institute released a survey which picked apart many aspects of the "decay in performance of many quantitatively managed funds". The blame for diminished quant performance was placed on rising correlations, style rotation, and the "herding" phenomena (Source ). While quant funds have in general, suffered in the months since August, Opalesque unearthed two funds which have managed to slog through the morass and break through with positive performance.

The equity fund Today we take a look at the $75m Tunnelbrook Prima Fund. Tunnelbrook is an intraday trading quantitative fund focused on US equities. Based in Miami, Florida and run by Stephen Malloy and Assi Reich, the Fund stands at +5.11% net YTD for 2008 and the notorious month of August 2007 saw its third best month of performance with +3.30%. The fund managers expect Tunnelbrook to surge to $100m in assets in the next few months and attribute reaching this benchmark to both performance and negative correlation to Hedge Fund Indices.

Malloy attributes much of the performance success to the uniqueness of Tunnelbrook's strategy. "The idea is that we trade very short term. We are in the market during the day and out of the market 100% overnight. We get in and out quickly and try to stay invisible - i......................

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