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From Precy Dumlao, Opalesque Asia:

The Bahamas-domiciled 2M Asian Absolute Return Fund, a multi-strategy absolute return fund focusing on opportunities in Asia, posted 0.17% in April (7.99% YTD), and appears poised to end May up 1.05% (est.) despite most hedge fund strategies suffering losses that month.

In his monthly letter to investors, Mike Munns, 2M’s portfolio manager, said that April’s positive performance was due to significant gains in the Model Trading portfolio as well as good results from the Convertible Arbitrage and Risk Arbitrage portfolios.

“The returns from the Convertible Arbitrage portfolio were positive in April with an increase in value spread across many positions. The fund continued to reduce its exposure to this strategy and we remain cautious. The average maturity of the bonds in the portfolio is still less than 18 months with the larger holdings having credit protection or strong asset and cash positions,” Munns said.

He added that the fund invested in new arbitrage deals in Hong Kong, Malaysia and Australia last April. Munns remains positive that returns from the Arbitrage strategy could be attractive.

2M reported its biggest gains this year in January after posting 3.97% gains, with significant performance, in the Model Trading portfolio and good results in both the Convertible Arbitrage and Risk Arbitra......................

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