Most of the loss came from positions in German DAX and S & P 500 indices that were sold short after July 15. The DAX contributed 66% of the negative performance, the S & P represented 26% and the NASDAQ 5%. Positions are still open at month end.

We remain confident that we can recover this drawdown rapidly.

At the beginning of July, we had also raised the amounts invested in our programs in Euro and in USD. Throughout 2008 and 2009, these programs had operated with extremely conservative investment positions that resulted in their low risks levels (annualized volatility) compared to equity markets and other funds.

The negative results of July were further increased by this higher exposure.

 In the last two to three years our program, has however managed to generate a non correlated performance, with a lower risk than equities and hedge funds. Between January 2008 and July 2009, program gained 3% in Euro. At the same time, European stocks lost 38% and hedge funds lost 16%.