+28.9% in 2011

2011 was first real-money trading year for Valu Valu.
All in all, it was a perfect year to put our algorithm to the test. Volatility was through the roof, especially in the past six months. But after much drama the S&P 500 ended only 0.5% above its previous year level, the smallest change in... 51 years! It has been a tough year for investors, even hedge funds lost 4% in average (source: Hennessee Hedge Fund Index).

The V² Alpha's strategy of balancing a portfolio between stocks and commodities was quite efficient. Due to a downward trend and growing concerns in our social indicator, we shorted the stock market as soon as June. It turned out to be an overall winning pick, although we did suffer during the impressive October rebound. 2011 ends superbly for us, thanks in part to our shorting of gold, that lost 20% of its value the last quarter.