With the close of 2009, BlueCut has yet to experience any vision that can provide insight into 2010’s developments. That being said, the quarterly comments will be kept short. The 4^th quarter activity involved trading around core positions, and adding short exposure in the financial and gaming space. The target allocation continues to be 45-55% net long. Aside from fantasy football trash talking, the holiday season has been spent reviewing the Compression theme that many of the positions are built around.

First, there is something that needs to be touched on… the term “normalized”. Aside from it being pretty clear that we live in anything but normal times, this term seems to be wildly accepted as a valuation crutch when DCF results are unpleasant. It is particularly amusing to consider how reactionary the Street has become with earnings estimates. With our objection noted, back to the topic of Compression.