We hope that 2006 was a great year for you and you have our wishes for prosperity and good health in 2007. In this letter we offer support for our belief in efficient markets. In our last letter we provided an overview of the investment process used to manage your portfolio along with the promise to provide more detail in subsequent letters. It was stated that the belief in efficient capital markets serves as a foundation for our investment philosophy. Call us if you would like to receive another copy of last quarter’s letter or simply visit the “About Empirical” section of our website to obtain a copy, look under the “Documents and Research” sub tab. We are planning to post more papers and research on our website. Separately, you will find a performance review of the various asset classes used in your portfolio. We felt it fitting to review considerations on tracking performance and benchmarking your portfolio.