Funds managed by K2 Asset Management recovered some ground in December but still finished the year in negative territory. Best in the month was the Peak Asian Absolute Return Fund which gained 5.89% but remains 34.25% lower than the start of 2008.
Similar results were recorded for their other three funds. The Asian Absolute Return Fund was up 5.17% for the month but down 28.35% for the year, the Select International fund gained 5.09% for the month but lost 22.44% during the year, while the Australian Absolute Return Fund had the lowest result in December of 3.37% but over the year has the best result with a loss of 18.61%.
The manager believes that credit markets are slowly being repaired which will see equities become the most attractive asset class. On the back of this view they are increasing the net exposure of both the International and Asian funds.
