Hi contax, I just don't understand why did you try to compare your fund with S&P 500 instead of Russell 2000? You know bb stocks are in their own little world...
My PulseIndex tracks the bb stocks, since the end of April, it has experienced a 45% drop, (90 - 50)/90 = 45%. Your fund's performance has dropped about 55%, (120 - 55)/120 = 55%). I use a simple 10SMA cross over and under system to determine if one should trade (agressively) the market or not, since we can go long only in the bb stocks. If your fund will use my PulseIndex as an indicator, I believe you can avoid most part of the tankage JMHO. I do not lie about my PulseIndex (ie. no 20/20 hindsight), I update it daily, and I use all bb stocks to construct the index.