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Opalesque Exclusive: Trident`s Japan fund on the road to recovery, up 1.53% in July, Japan going through technical recession but can weather storm better than most due to high cash levels Trident Pacific Japan Absolute (Cayman) Ltd. Long/short Japanese Equities is a concentrated directional fund; the July performance is +1.53% in the USD class (-20.41% YTD) and +1.19%% in the Yen class (-19.39% YTD)net after fees with average net exposure of 9%. The Topix fell 1.25% in July.

The fund is skewed for a rebound in terms of sector exposure, however the managers kept the net exposure low as the market is showing no clear trend in the current economic environment.

The Market The fundamental economic releases continue to soften in Japan and Japan is half way through a technical recession with the second quarter GDP at an annualized -2.4% following a growth rate in excess of 3% in the last quarter of the fiscal year 2007. The widely watched Tankan survey released on July 1st. fell to +5, its lowest reading since September 2003. Consumption remains flat in response to higher inflation for especially day to day goods. Exports are under a cloud as the strong export growth to the BRIC nations and the Middle East starts to show signs of slowing. Supply and Demand data showed non resident investors turning net sellers (ca. Yen 400bn.) …

Outlook The repercussions of the US credit problems are now being seen in the emerging markets. Japan’s compa......................

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