HEDGEfolios year-to date stock performance for 2008 (through 02/29/08 close) was up 1.43%.

Over the same time period, the S&P 500 index was down -9.36%.

At the end of February, the HEDGEfolios universe consisted of 3,471 stocks.

Commentary: Another brutal month is over. Unfortunately, that does not mean the decline is over. Despite bailout plan after bailout plan, stocks could not withstand the pressure of economic weakness from housing, consumers, poor corporate earnings and credit markets. Inflation is accelerating, the US dollar is crumbling and the economy is barely growing (even if the government measurements are accurate.) During the month, HEDGEfolios increased bullishness to end February with 68% UP signals. While the leap day markets declined by 2.7%, HEDGEfolios managed to only lose 0.7% on the day. I would like to have been more hedged to the downside in front of this move, but my signals are almost entirely dictated by what I think the majority of investors expect will happen. For most of February, an optimistic tone was building. It will be interesting to see whether the last day’s action will wipe out the positive sentiment. Regardless of all the challenges, HEDGEfolios finished with a very small gain during February and is still in the black for 2008.

• 2007, HEDGEfolios performance was +21.78% vs. + 3.55% for the S&P 500 index
• 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.