For the year 2012 our Long / Short Hedged portfolio gained 1.26%.  Not a great year when measured against the S&P 500 Index (SPX) which was up 13.4%.  The portfolio is up 104.2% since inception on 7/3/2006.  Most of the under performance during 2012 was a result of being aggressively hedged twice where the market didn’t suffer a substantial decline.  In addition, from mid March thru the middle of May the portfolio gave back some gains it had achieved during the rally from the first part of the year.  We’re comfortable that the portfolio eked out a small gain considering all the potential tail risk events of 2012.     On the chart above we compare the performance of the S&P 500 Index against our Long / Short Hedged portfolio from its inception on 7/3/2006. On the chart below the green lines represent when we added long exposure (and reduced hedges).  The yellow lines represent reducing longs and increasing shorts (using a simple short of SPY)  in the portfolio.  The

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