With the markets seemingly shrouded in darkness, one London-based hedge fund is basking in the light. Stratton Street Capital said its US$20 million Asian Bond & Currency Fund returned 12.68% last month, doubling its year-to-date gains to 24.54%.

Stratton said key to the fund’s performance has been the creation of proprietary tools to assist in determining value in normal markets, while warning against market dislocation before they occur. It also said the fund continues to exploit the flight to quality in Asia from low grade credits to high grade credits.

“Its currency position also reflects a similar position being long credit nations against shorts in some of the regions deficit currencies,” said the firm. 

Stratton Street was founded in August 2000 and currently manages some US$130 million in total assets.