ASIAHEDGE JUNE 2007 ISSUE
PERFORMANCE
QAM ASIAN EQUITIES FUND

The systematic dynamic value approach of the Quant Asset Management's

Asian Equities Fund worked well in May taking the fund up 31.97% in

2007, with May gains of 13.88%. Since inception in April 2004 the fund has gained 119%.

QAM's Frank Holle explains that fund's quant model selects a much

diversified portfolio of 60 stocks each month out of all Asian

countries including Japan using a combination of factors based on

valuation, earnings momentum, earnings volatility, price volatility and

- momentum which are re-weighted on a monthly basis.

Amongst sectors that performed well in May were shipbuilders in Korea.

The fund's relatively big holdings in H-shares in Hong Kong in May also

contributed significantly to the performance. Holle's outlook for 2007

is optimistic because of the model's systematic approach which

generates performance in "all weather circumstances" even in an

environment where markets could fall for a prolonged period.

QAM's total firm AUM are now topping USD 130 mln. Holle expects the AUM

to grow sharply given the fund's solid track record of now longer than 3 years.

The QAM Asian Equities fund will be closed around USD 100 mln.