The Centaurus Asia Pacific Opportunities Fund made gains in May of 1.6%, taking year-to-date performance to 7.63%.
Gains were attributable to participation in event-driven successes and also failures. A reverse arbitrage play in an Australian buy-out situation paid off when its shareholders rejected a buyout bid. Another Australian position, this time on the long side in takeover target EDT Retail Trust, was the fund’s other big winner for the month.
Three-quarters of the fund’s assets were in merger arbitrage, a sector that portfolio manager Kim Yu Ang believes can provide steady, low-volatility returns while having low correlation to