HEDGEfolios year-to-date stock performance for 2008 (through 10/31/08 close) was up 33.83%.

Over the same time period, the S&P 500 index was down -34.01%.

At the end of October, the HEDGEfolios universe consisted of 3,329 stocks.

Commentary: HEDGEfolios was able to advance approximately 5% during a month that saw the S&P decline 16.9%, the worst monthly performance for the index since the October 1987 crash.  In the middle of the month, I went from a largely bearish position of 69% DOWN signals and ended October with 67% UP signals.  Initially, this bullish position was painful but in the last week, it started to pay off.

Prior Years’ Performance:

• 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.