Salida Capital, the Toronto-based hedge fund manager, has bounced back strongly from a disappointing 2008, posting some of the best returns in the industry so far this year.

Salida Capital's Strategic Growth Fund is up 82.62% for the year, having gained 22.49% in May. This fund follows a primarily long/short equity focused on merger arbitrage and special situations.

Its Global Energy Fund is a long/short equity based on large and mid cap energy stock. This fund has performed even better, up 91.44% at the end of May.

The strong returns mark a spectacular turnaround for Salida Capital which endured a difficult year in 2008. The company was forced to close three of its offshore funds, including its flagship Global Opportunity Fund, when it became embroiled in the Lehman Brothers collapse.

The Strategic Growth Fund was launched in March 2009 and follows a similar strategy to the Global Opportunity Fund. It is managed by Danny Guy, Salida's chief investment officer.

Salida Capital said its Strategic Growth Fund profited from positions in the energy and gold sectors, with a smaller contribution coming from base metals. The fund is currently focused on commodities, with significant exposure to oil and gas, gold, base metals, agriculture and uranium.

The Global Energy Fund benefited from the 27% jump in the price of oil in May. Salida said oil prices could be due for a short term correction, but added it was becoming increasingly interested in the opportunities in the US natural gas market.