The "Digging" Report Q3 2002

September 30, 2002

My Personal "Mutual Fund" OTC:RASXX

Note: OTC means Over The Counter. The ticker symbol is fictitious; please don't ask your broker to buy it. In the rare event that such a ticker does exist please inform me at once, in order to change it. I don't want to mislead anyone.

Another red-ink quarter in the life of the Fund: -7.58% The fact that the S&P 500 shed 17.63% is cold comfort. Sure, it means the Fund greatly outperformed the market average, but, still it is losing money. At present time the Fund is composed of 5 accounts with several investments per account. Two of those accounts are actively managed with the goal to be profitable under all market conditions. These accounts, which make up for about 40% of the Fund's assets were responsible for the outperformance of the Fund. It helped a lot that other 42% of the assets are invested in fixed income instruments.

The rally that started by the end of July proved to be short lived and had no effect on the Fund. By the end of the period the market looks ready to make new lows, raising concerns about the continuation of the 30+ months bear.

Performance as of 09/30/2002

NAV: 14.99

* Annualized compound return

The 1, 3, 5 and 10 year periods are counted backwards starting from the report date

Performance is before personal taxes. Maintenance and research costs (my personal time doing the accounting, trading and web publishing; time spent on the web and investment books) are not taken into consideration.

Freedometer ratio: 3.14%

Scale: 0-10 Worthless slave; 11-25 Rank and file; 26-40 Lowest level privileged; 41-75 Candidate for temporal release; 76-99 Almost free on parole; 100+ § A free person!

§ Unless you can't make ends meet with your present salary.

Quarter to date

Year to date

Since Inception

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