HEDGEfolios stock performance for 2007 year-to-date (through 02/28/07 close) was up 3.36%.

Over the same time period, the S&P 500 index was down - 0.79%.

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

Commentary: Prior to the market selloff on 2/27/07, HEDGEfolios performance was slightly better than the index at 2.80%. Then the power of a market neutral hedging strategy showed its worth when the rest of the market was taking a hit. From Monday’s open until the 2/28/07 close, the HEDGEfolios universe actually showed gains of 0.5%. It has been painful to average 55% DOWN signals since mid-December, but I am extremely happy with how well HEDGEfolios held up under a stressful trading environment.

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.