Rob Carrick writes in Canada's Globe and Mail:
The mutual fund industry is going to hate this.
Investors will be angry that they don't see more of it.
Unhappy at the returns he has generated for clients, money manager Francis Chou is refunding almost all the management fees collected by his Chou Europe fund since it opened for business in September, 2003.
“We have not made money since inception,” explained Mr. Chou, a widely respected investing figure whose financial career began in an investment club he formed in 1981 with six Bell Canada co-workers. “I don't like negative numbers long term. Short term – one year, two years or three years, if you do badly that's fine. But long term, you want to make sure you're making money for your unitholders.”
What a difference there is between Mr. Chou's tiny, eponymous fund company and his big-boy competition. He looks out for unitholders. They look out for shareholders.
Be sure to read the whole thing if you admire Chou's integrity, as I do. He's a class act.
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