Chou: "I've Become a Bond Trader"

Another interesting piece on Francis Chou appeared in The Globe and Mail the other day. You'll want to check it out if you haven't already. One bit that jumps out at me:

From his year-end report, I knew that Francis was starting to find value in four sectors of the stock market - retail, media, telecommunications and cable, and pharmaceuticals. But when we got together he was most aggressively buying bonds, specifically distressed debt.

At lunch Francis lamented that "I've become a bond trader." He finds it is very time-consuming because "there is a lot of haggling that goes on." His days are now filled with calls from bond dealers who know that Francis is an interested buyer. He is on everyone's speed dial.

Recall the other day I linked to an article which mentioned Chou's funds have seen redemptions. I still shake my head at that. Because I cannot imagine anyone investing in Chou's funds not being in for the long haul. And not understanding that even the best value guys hit soft spots now and then.