Andrew Allentuck profiles Canadian value investor Francis Chou in the Globe and Mail:
His $688.1-million Chou Associates Management Inc. Global Balanced Fund produced a 18.9-per-cent return for the 12 months ended Jan. 31, 2007, which was a high first-quartile result among 255 funds in the sector. His $47.6-million Chou Bond Fund racked up a 16.6-per-cent return for the period, top among 351 bond funds that averaged just 3.1 per cent for the 12 months ended Jan. 31.
I also find this part interesting:
Mr. Chou, who works alone, does not believe in market fashions. "I do not invest in commodities," he explained. "I also avoid high-tech stocks -- I call them 'high wrecks.' I do not like real estate in general and, frankly, I do not even like the bond and stock markets."
Mr. Chou's antipathy to capital markets shows up in his high cash level, currently 42 per cent in his global balanced fund and 53 per cent in the Chou Bond Fund, a portfolio that includes distressed corporate bonds.
Allentuck's profile includes Chou discussing several of his individual holdings. Among them is one regular Controlled Greed.com readers know I own:
He bought satellite communications company DirecTV Group Inc. (DTV-NYSE) for $13.50 . Shares have recently traded at $24.50. "We thought the stock was worth twice what we paid for it and the market agreed," he said. "The company could be bought out and hand us a large profit on the deal." As it is, earnings for the 12 months ended Dec. 31, 2007, should rise to $1.25 a share from $1.05 a year earlier, Mr. Chou added.
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