It was a very challenging year for asset managers. Most funds were on the wrong track when the markets lost substantial value in the first three months of the year. Then all of a sudden, in March, everything turned upside down: For the rest of the year, many experts were surprised by a major rally in the markets. In the end, the S&P showed an outstanding performance of 23% for the overall year.

In this year, we started to show our investment ideas in two different buckets: A fundamental value portfolio and a speculative portfolio.

Our average performance of both portfolios was 41%
versus an S&P500 performance for the year of 23%

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This was a very difficult year. At the beginning, the stock market slump that we had expected in mid 2007 finally happened and suprised us at that time. We sold our entire portfolio in March. From April to July, we had very contradictory signals from the market and stayed all in cash. In August, we received very consistent signals to go short and put all money on a Nasdaq short call. Many of our readers followed us and were highly rewarded.

Our portfolio performance for the year was 45%
versus an S&P500 performance of -38%

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In 2007, we traded very actively. From mid 2007, we recognized the danger based on the housing bubble and asset backed securities. We outperformed the indices but were a bit too early with our short calls.

Our average performance was 18%
versus a S&P500 performance of 4%

Please note that until 2007, we focused on individual trades rather than a portfolio. A 100% weight meant a "full trade". In order to calculate the portfolio performance, we had to assume a portfolio weight per trade. We looked at the maximum number of open  trades in parallel and decided that a 100% weight per trade would translate into a 6% portfolio weight.

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In 2006, we recognized a major investment opportunity in China (China Index ETF, China Mobile, China Life and Ctrip). Also, we invested in metals (Silver Future, US Steel, Ashland). Our overall bullish perspective was supported by a Dax long call.

Our portfolio performance was 129%
versus an S&P500 performance of 14%

Please note that until 2007, we focused on individual trades rather than a portfolio. A 100% weight meant a "full trade". In order to calculate the portfolio performance, we had to assume a portfolio weight per trade. We looked at the maximum number of open  trades in parallel and decided that a 100% weight per trade would translate into a 6% portfolio weight.

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