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Komfie Manalo, Opalesque Asia:

Bob Treue's hedge fund, The Barnegat Fund, was off to a good start this year gaining 1.5% in May, bringing year-to-date profits at 12.5%. Treue said that the fund's net, annual compound rate of return since launch in 2001 is 16.5%.

As of May this year, Barnegat's assets under management is placed at $607 million.

"We are off to a good start this year," Treue said in his monthly report. "A portion of our profit has come from carry. What I mean by carry is that if we come back a year from now and all the yields are the same, we would make about 7%. Historically, this carry has ranged from 0-20%. Last year, carry was also about 7%."

He added that in 2016, Barnega's trades moved slightly against the company, but he was able to have a positive return (+3.5%) because the loss from market moves was less than the gain from carry. This year, the market has moved in their direction and the fund gained 12.5%.

"It is nice to have this wind at our back with carry. In today's low interest world, 7% carry helps,: he added.

Fund volatility at new low

Treue said that the annualized volatility of Barnegat's share price reached a new low in May at 2.8%. Annualized volatility for the entire year has also been low at 4.8%. Given this low volatility, Barnegat has not reduced the size of its trades.

"Our share price volatility has dropped because the trades we have on and the m......................

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