DV01 Mechelle Pty Ltd gained +2.7% in May, following on from strong positive returns in March and April.

1 yr return: -11.73%. Annual (Aug 2006): +12.94%

The company also hit its high water mark in May, previously set in June 2008. Net long exposure has increased significantly from September 2008, from 12.2% to 73% currently. The company's 2009 return now stands at +18.16%, however this follows on from -21.23% in 2008 and with a current risk level (annualised standard deviation) of 22.05%.

The MQ Asia Long Short Fund was up +4.26% in May, driven by alpha generation as the Fund's correlation to the MSCI Asia Pacific Index for May sat at -0.01%.

1 yr return: -5.89%. Annual (Oct 2005): +9.66%

Although most Asian equity markets performed strongly for the month, given the Fund's observed beta was almost zero in this period the manager has attributed the Fund's performance to their own alpha generating strategies. This result also puts the Fund back in the black for 2009 (+0.96%).

The manager is looking to gradually increase gross exposure in the months ahead, as volatility declines and there are indications that the Fund's investment processes are generating alpha again.

The Platypus Australian Long/Short Fund lost -6.18% in May, driven by losses on short positions in the materials sector.

1 yr return: -18.98%. Annual (Oct 2005): +2.4%

The Fund, which is managed by Platypus Capital Management, was hurt by the ongoing rally of base metal prices since the start of 2009, which was reflected in the share prices of materials companies (the sector gained +6.58% in May). The Fund has been short in this sector for some months, which provided positive returns in late 2008 and early 2009, however more recently this strategy has been dragging down performance. Although short positions are being reduced, this is being undertaken gradually therefore most of the losses have stemmed from long standing positions.

The Prime Value Growth Fund reported a gain of +2.8% in May, in a month where the Fund outperformed its benchmark (S&P/ASX300 Accumulation Index) by +1.3%.

1 yr return: -22.55%. Annual (Apr 1998): 15.64%

These results, although encouraging, come after the Fund lost over -31% last year. The Fund's cash holding and preference towards defensive stocks with strong balance sheets held back overall performance in May. However the manager believes that while earnings outlooks remain vunerable this is the most prudent way to minimise downside risk while providing upside if the market rally continues.

The Aurora Property Buy-Write Income Trust gained +1.13% in May as AREITs outperformed the broader equity market for the second successive month.

1 yr return: -8.51%. Annual (Jul 2007): -21.73%

The AREIT market, driven by strong performances in the office and diversified sectors, outperformed the S&P/ASX 200 Accumulation Index by +2.4% in May. The manager believes this to be another sign that AREITs were significantly oversold in previous months, with demand now coming from dedicated REIT funds, domestic equity investors and offshore REIT and equity investors. Successful equity raisings for a number of AREITs during the month also suggested that institutional investors remain positive on the outlook for AREITs.

The Apostle Loomis Sayles Senior Loan Fund gained +3.62% in May, in a month where CCC-rated loans gained +18%.

1 yr return: -9.53%. Annual (Nov 2007): -5.50%

Given the Fund is heavily weighted towards higher quality investments and has a a significant cash holding, it missed out on this impressive result and performed in line with the BB- benchmark. Regardless of this result the manager does not intend to rebalance the Fund's portfolio to capture the risk-rally returns of lower grade loans. The manager also remains cautious regarding the outlook for credit markets, and the global economy as a whole, and continues to search for investments the recent market rallies have overlooked.

The St Helens Capital Ailsa Fund returned +3% in May with positive returns from both its long and short trades, and is now up +16.71% for 2009.

1 yr return: +16.1%. Annual (Dec 2001): +12.57%

Short strategies that proved successful included Rio Tinto and Leighton Holdings, while Bluescope, Oil Search and Stockland were positive long positions. Other long standing positions also contributed positive returns to the Fund. Going into June the Fund is becoming more defensively positioned as the manager strives to take advantage of opportunities in current markets.

The Apeiron Global Macro Fund reported a gain of +1.34% in May, in a month where ongoing optimism over a global economic recovery fuelled sideways movements in markets.

1 yr return: +19.52%. Annual (Feb 2006): +18.35%

Although the Fund continues to post solid monthly gains, the manager remains skeptical on the sustainability of the current economic recovery, and believes this will present opportunities for the Fund. The Fund's annualised risk (standard deviation) now stands at 11.4%.

The Naos Small Companies Fund was up +27.7% in May, continuing its recent run of impressive returns to post a three month return of +58.55%.

1 yr return: -15.05%. Annual (Jan 2005): +3.82%

The Fund's 2009 return now stands at +67%, comprising a consecutive five months of positive returns. However these results come after a particularly difficult 2008 for the Fund, down -63.63% for the calendar year and -20.37% in October alone.

Standout individual performers in May were positions in Acrux (+100%) and Austin Engineering (+35%).

The Prodigal Absolute Cayman Fund gained +6.25% in May and is up +26.37% for 2009. The Fund has not posted a negative return since October 2008.

1 yr return: +0.36%. Annual (May 2007): +4.48%

The Fund recorded positive performances across most strategies, especially convertible arbitrage which has been the strongest performer for the Fund for the past six months. The risk arbitrage portfolio, which has been negative in recent months, and model trading also contributed positive returns in May. At month end the Fund was 80% invested, mostly in model trading (40%) and convertible arbitrage (32%). All returns are subject to confirmation by the administrator.