Exited Direxion Financial Bull 3X Shares (FAS)

We exited our position in Direxion Financial Bull 3X (FAS) shares today at $6.55. As we mentioned previously, this was a speculative trade and the holding period was expected to be a few days. Ultimately, it worked out as the financials rallied briefly following the Fed meeting – the trade provided a return of just under 30% in four days.

Below is our updated portfolio - it is about 40% in the red. Our cash position increased slightly to 18.5%:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	16.69	5.04	0.03	0.38
Philip Morris International (PM)	1/4/2005	32.19	37.21	8.18	15.59	0.45
Kraft Foods (KFT)	Various	24.03	22.16	4.46	(7.80)	0.23
Pfizer (PFE)	Various	24.37	13.70	6.89	(43.78)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	13.34	6.71	(47.22)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	2.46	1.24	(78.08)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	14.70	5.18	(62.52)	0.03
Patni Computers (PTI)	8/10/2007	20.85	5.45	2.74	(73.88)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	45.74	4.60	(46.26)	None
Anthracite (AHR)	11/09/2007	7.97	0.36	0.18	(95.48)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	2.89	2.91	(37.31)	None
Harvest Energy (HTE)	11/28/2007	21.01	4.30	1.73	(79.54)	0.22
iRobot (IRBT)	12/18/2007	18.65	8.58	3.45	(53.60)	None
LDK Solar (LDK)	01/22/2008	30.49	4.85	1.46	(84.09)	None
Aegon N.V. (AEG)	04/28/2008	15.99	3.71	1.12	(76.79)	0.00
LM Ericsson (ERIC) Call Value	05/05/2008	11.83	7.50	6.04	(36.59)	0.15
TD Ameritrade (AMTD)	05/21/2008	17.68	12.63	5.08	(28.58)	None
Trina Solar (TSL)	Various	24.90	8.07	3.97	(67.59)	None
Costco (COST)	08/01/2008	62.28	45.12	4.54	(27.55)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	19.34	2.92	(47.63)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	5.32	3.75	(23.61)	0.00
Cash				18.42
Total Portfolio					(39.14)	2.54

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Ericsson, we wrote April 7.5 covered calls on them at 0.95

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2009	8.96	(23.29)	2.64
DryShips Feb 15 Calls (OOCBC)	01/29/2009	0.20	01/16/2009	2.50	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2009	16.01	44.86	1.73
Taiwan Semi Feb 7.5 Calls (TSMBU)	Expired	NA	01/09/2009	0.90	NA	0.77
Direxion Financial Bull 3X Shares (FAS)	03/16/2009	5.09	03/19/2009	6.53	28.31	1.26
Realized Gain/(Loss) YTD	-	-	-	-	-	1.66

• % 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.