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Terry Lally From Komfie Manalo, Opalesque Asia:

The strong May and June performance of Spotlight Catalyst Fund L.P., managed by Laguna Beach, California-based Spotlight Fund, was driven by stock specific events rather than the manipulation from the U.S. Federal Reserves QE2 (quantitative easing 2) program. The Spotlight Catalyst Fund was up +1.83% in May and +3.16% in June compared to the S&P 500 which fell -3.1% for the May/June period.

In an exclusive interview with Opalesque as one of the funds featured in the Opalesque Solutions Emerging Managers Database, Terry Lally, CFA, Managing Member at Spotlight Fund said: "During QE2 we observed many interesting things including many companies valued at levels which assume a very optimistic view of future earnings power."

He added that those that benefited from the QE2 program would return to stock picking in the second half of this year as he predicted further alpha generation for his fund as "our companies are generating war chests of cash that they can use to increase intrinsic value."

"We believe the performance of the market overall and specific stocks during May and June tell a story: The switching of leadership from the beta "Risk On" trade which worked from September [2010] through April [2011] to a more sele......................

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