Although I decided to go 'market neutral' back in June based on weakened retail sales data, the instrument I used to hedge the stock exposure is the ETF that is short the S&P 500 (ticker: SH). Since the model portfolio's long positions are roughly 1/3 foreign stocks, I essentially hedged out the stock exposure while leaving some foreign currency exposure. Sometimes, it's better to be lucky than good (in the short run). So while the market has been fairly volatile and the model portfolio has been fairly stable (providing for a superior risk-adjusted profile), the model portfolio has only maintained its return lead over the indexes due to the declining dollar alluded to above.
