UFC 46: Supernatural (1/31/04), Matt lost his welterweight title to BJ Penn, succumbing to a rear naked choke at 4:39 of the first round. 2006 Penn returning to the Octagon for the first time since his title-winning effort over Matt Hughes in January of 2004 (a legal dispute with the UFC, recently resolved, forced the stripping of his belt and kept him from competing in the organization),http://www.ufc.com/index.cfm?fa=fighter.ArticleDetail&gid=2291&pid=154
He recently lost a decision to St Pierre. He did real good in the first round but seemed like he gassed a bit and didn't do so well the rest of the fight. He is a badass though and will definitely be back in the octagon winning again. If he goes back to LW he will be one of the top 3 contenders for that title for sure.