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Alternative Market Briefing

NEAS Power Fund down 1.37% in May due to higher volatility, lower trading volumes and sovereign debt concerns

Tuesday, June 15, 2010

From Sagar Chakraverty, Opalesque Asia:

In May 2010, the NEAS Power Fund’s Euro Class shares lost -1.37% (+6.81% YTD), while its USD class was down -1.28% (+6.67% YTD). The team attributed the marginal slip in performance to the high volatility and lower trading volumes driven largely by limited exposures by market participants due to the unusually high number of market holidays. Additionally, an increasing concern over the European sovereign debt situation intensified the nervous sentiments of investors.

The NEAS Power Fund was down -3.49% in 2009 but returned +15.76% in 2008 (for both share classes). The European power trading volumes reached a record high in 2008, led by solid performance in the Nordic region and strong growth in several of Europe’s smaller trading markets.

The HFRI Energy/Basic Materials Index was down 4.17% in May (-0.72% YTD). This index was up 41.83% in 2009 and down 38.31% in 2008.

Absolute Return Partners (ARP)’s NEAS Power Fund is backed by NEAS, a Danish energy trading company. This partnership enables ARP’s trading team to draw on vast resources such as in-house meteorologists, a quantitative team and a dedicated carbon emissions team.

The NEAS Power Fund is positioned within the energy markets with a predominant focus on the power markets. The......................

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