MCM Performance update for the week ended March 7, 2008

For the week, and the year to date, MCM’s performance continues to compare favorably against all of the major US indices.

Our MCM Macro Theme from December 2007 is becoming seemingly more relevant by the day: 'Litigations & Redemptions' - The Tide has rolled out on the Levered Long Community'-Dec07'. It seems rather simple, but then again, most things do when considering them retrospectively - Hedge Funds should indeed hedge…

From Portfolio Managers to Asset Allocators, many of this industry's "savants" suggested throughout 2007 that single stock short selling was no longer a business they wanted to commit resources and capital to. In fact, some hedge funds actually talked the fund of funds community into giving them the capital to launch 'long only', 'concentrated', and 'activist' funds.

Of course, that was one of the many signs that this bull market cycle was topping. Tops are processes, not points... and as Santayana would say, "those who have not learned the lessons of history, are doomed to repeat them."

Core Short positions which contributed most positively to this week’s return: AN, BAC, CNET, APD, BLK, KMB, WYNN, and BAGL. We are pleased that we have already invested the time and patience into an investment process that allows us to run a net short business.

MCM's Global Long/Short Equity Portfolio:
Week of March 3/08: +1.46%

2008 Year to Date: +3.32%

Index Performance:
Week of March 3/08: Dow -(3.04%), S&P 500 -(2.80%), Nasdaq -(2.60%), Russell 2000 -(3.80%)

2008 Year to Date: Dow -(10.34%), S&P 500 -(11.92%), Nasdaq -(16.58%), Russell 2000 -(13.83%)

We’re looking forward to having our market strategy, themes, and bottoms up company research in print for you again in the coming months.

Best of luck out there in the meantime,
KM

MCM Disclosure/Disclaimer: This email and/or blog is for a select group of my friends, and represents a beta test of an idea that i am incubating. My email and blog writings are prepared without regard to the unique circumstances or goals of those who read them. They do not provide investment advice that should be specifically acted upon without considering the all encompassing range of investment information and/or considerations available in the public domain and/or without considering all appropriate professional advice. This should not be considered a solicitation to buy or sell any security or to participate in any investment strategy. The information and editorials in these writings are not necessarily complete or perfectly accurate and are not guaranteed by Keith McCullough or MCM. This information is protected from disclosure and constitute opinions only as of the date of their issuance. Opinions are subject to change without notice, and Keith McCullough or MCM do not accept any liability whatsoever for any losses estimated to be attributable to any use of this content. Keith McCullough and/or McCullough Capital Management, Inc. likely owns and/or is currently trading in all of the securities cited in these emails and/or blogs.

MCM's Year To Date Performance...

At the begining of January I moved my focus away from the daily rigors of being held accountable to my blog, to building out our new team and business.

All the while, I've been getting a lot of requests for updates on our operational progress and MCM's year to date portfolio performance.

With regards to the latter, at February's month end prices, MCM's Global Long/Short Equity portfolio is +1.86%.

From a top down perspective, many of the MCM Macro Themes that we spoke to in Q4 of 2007, helped drive performance. Inflation and Fed Centricity were two of the obvious ones that helped our net long positions in gold and silver, while our 'Global Basic Food Consumption Growth will takeover from the consensus "Its Global this time" Industrial Production Growth story in 2008'-Dec07' theme has proven to be very additive to some of our core short positions like Einstein Noah Bagels (BAGL), which is captive to wheat prices.

MCM's performance compares favorably against all of the major US indices:
2008-to-date: Dow (7.53%), S&P (9.38%), Nasdaq (14.36%), Russell (10.42%)

With respect to the former, I'm looking forward to updating you all on our new company name and key executives in the coming weeks.

Our new offices are set to open at 111 Whitney Avenue, in New Haven, CT on April the 1st.

Best,
Keith