K2 Asset Management's two Asia focused funds - the K2 Asian Absolute Return Fund and the K2 Peak Asian Absolute Return Fund - gained +10.26% and +12.07% respectively in May.
1 yr return (ARF): -5.66%. Annual (Aug 1999): +12.74%
1 yr return (Peak): -10.25%. Annual (Aug 2000): +8.29%
A key driver of performance was the rally in Chinese region markets on the back of indications that the Chinese economy is showing signs of recovery. In India the market rallied +28% for the month after national elections, while Singapore gained +25% over numerous sectors. South Korea and Australia were relative underperformers, gaining +2% each.
Both Funds increased their overall long exposure significantly during May, particularly in China as signs emerged that the government stimulus program was gaining traction.
