HEDGEfolios stock performance for 2007 year-to-date (through 07/31/07 close) was up 13.95%.

Over the same time period, the S&P 500 index was up 2.63%.

At the end of July, the HEDGEfolios universe consisted of 3,685 stocks.

Commentary: July ended with a significant erosion of stock prices and due to my consistently bearish stance, HEDGEfolios actually advanced during the month. On 7/31/07, 63% of the symbols had DOWN signals vs. 37% UP. While the focus is on credit concerns, there are other headwinds facing stocks inclusive of record highs on oil, weakness of the US dollar, risks to consumer spending, etc.

Past results:

• 2006, HEDGEfolios performance was +25.54% vs. +13.62% for the S&P 500 index
• 2005, HEDGEfolios performance was +19.99% vs. + 3.00% for the S&P 500 index
• 2004, HEDGEfolios performance was +31.19% vs. + 9.00% for the S&P 500 index

Disclaimer: Nothing in my performance quoting is intended as an advertisement or in any other way meant to encourage anyone to subscribe to HEDGEfolios. These performance figures have not been audited or verified by an outside party and are NOT in compliance with the CFA’s AIMR Performance Presentation Standards. They don’t net out any transaction costs such as commissions or management fees and are not a total return calculation as I do not include dividend yields or any compounding factor. These performance figures cover a hypothetical portfolio of the entire HEDGEfolios stock universe with an equal weighting of each security. The calculation is simply the cumulative total of all gains and losses from the signals during the period in question.