Sold Companhia Siderugica Nacional (SID)& DryShips (DRYS)

We sold out of Companhia Siderugica Nacional (SID) at $16.01 and DryShips (DRYS) at $8.96. Reports from the world economic forum in Davos gave ample evidence that global trade is not going to rebound anytime soon. Both these companies are aggressive positions in our portfolio that are dependent on global trade and so we decided to exit the positions with a combined gain of just under 1% of our total portfolio value. As part of exiting DryShips (DRYS) we bought back the covered calls we wrote previously – the premium on the Feb 15 calls had come down to just $0.20 following the announcement that they may breach debt terms. Following these transactions, our cash position has gone up to 12.5% of our total portfolio value.

Below is our updated portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	16.84	4.57	0.93	0.16
Philip Morris International (PM)	1/4/2005	32.19	38.75	7.99	20.37	0.23
Kraft Foods (KFT)	Various	24.03	29.28	5.30	21.83	0.11
Pfizer (PFE)	Various	24.37	15.12	6.84	(37.95)	0.33
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	16.36	7.40	(35.27)	0.17
Taiwan Semi (TSM) – Call Value	7/27/2006	8.71	7.50	6.78	(13.77)	0.24
Advantage Energy Fund (AAV)	11/2/2006	11.22	4.25	1.92	(62.14)	0.22
Central Europe & Russia Fund (CEE)	Various	39.23	14.68	4.65	(62.58)	1.85
Patni Computers (PTI)	8/10/2007	20.85	5.48	2.48	(73.74)	0.03
Itron Inc. (ITRI)	11/07/2007	85.01	66.25	5.99	(22.16)	None
Anthracite (AHR)	11/09/2007	7.97	1.67	0.76	(79.05)	0.35
ClickSoftware (CKSW)	11/09/2007	4.61	2.14	1.94	(53.58)	None
Harvest Energy (HTE)	11/28/2007	21.01	8.61	3.11	(59.03)	0.45
iRobot (IRBT)	12/18/2007	18.65	7.54	2.73	(59.22)	None
LDK Solar (LDK)	01/22/2008	30.49	12.44	3.37	(59.20)	None
Aegon N.V. (AEG)	04/28/2008	15.99	5.60	1.52	(64.97)	0.24
LM Ericsson (ERIC)	05/05/2008	11.83	7.50	5.43	(36.59)	0.20
TD Ameritrade (AMTD)	05/21/2008	17.68	11.65	4.21	(34.12)	None
Trina Solar (TSL)	06/06/08, 07/31/08, 01/23/09	24.78	7.85	3.55	(68.40)	None
Costco (COST)	08/01/2008	62.28	46.45	4.20	(24.42)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	29.14	3.95	(21.11)	0.41
Cash				12.31
Total Portfolio					(38.81)	5.46

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• The yield column is current as of 11/21/2008.
• For Taiwan Semi (TSM), we wrote Feb 7.5 covered calls on them on 01/05/2009.
• For LM Ericsson Telephone Company (ERIC), we wrote Apr 7.5 covered calls on them on 01/21/2009.

And, below is the list of transactions done during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2008	8.96	(23.29)	(1.42)
DryShips Feb 15 Calls (OOCBC)	01/29/2009	2.50	01/16/2008	0.20	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2008	16.01	44.86	1.73
Total 2009 Stock Transactions - Gain/(Loss)	-	-	-	-	-	0.89
Income (Dividends, Interests, etc.)	-	-	-	-	-	NC
Net Realized 2009 Gain/(Loss)	-	-	-	-	-	0.89

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.