In the world of Canadian finance, Francis Chou is the proverbial “little guy.” He’s not well known and maintains a low profile. But there are three things about him that are remarkable. First, he makes money for his investors – a lot of it. Second, when he does make a rare public pronouncement, he calls it like it is – no pussyfooting for him. And third, he sometimes does things that are unheard of in the world of money, like returning fees to his investors when he feels his performance has been sub-par. When did you ever hear of anyone doing that?
By Fund Library News Wire | Friday, October 17, 2014
Growth fears and plunging commodity prices contributed to a frenzied selloff last week. But the steady stock market decline since the beginning of September took a breather on Friday, as market rebounded and trimmed weekly losses. With pressure from the energy sector, Toronto’s S&P/TSX Composite Index was the only major North American index to crack the correction threshold, as Thursday’s intraday low of 13,646.79 was 13% below September’s high of 15,685, more than the 10% drop that’s usually classified as a correction.
Q – With the stock market plunging, I have been looking to invest in something a bit safer. So I’ve been considering either bonds or bonds funds. What are the risks of investing in bonds? – Ray S., Toronto, Ontario
When Q Magazine questioned R.E.M.’s lead singer about the lyrical density of his 1987 hit single, “It’s the End of the World as We Know It (And I Feel Fine),” Michael Stipe responded by saying, “The words come from everywhere. I’m extremely aware of everything around me, whether I am in a sleeping state, awake, dream-state or just in day to day life.” Our investment committee’s cerebral activity – both of the conscious and unconscious variety – has also been more active of late. Of course, the subject is different (and does not have a hip drummer and bass player to back our musings).
TheRBC North American Value Fund has proven to be a strong performer over the longer term, despite its $2.1 billion large-cap asset base. That’s mainly because the team of Stuart Kedwell and Doug Raymond manage the fund using a multi-stage portfolio construction process that incorporates both quantitative screening and fundamental, bottom-up analysis with overall portfolio allocation deriving from the rigorous stock selection process rather than an attempt to predict macroeconomic trends.