Author Topic: Chou America Funds!  (Read 67520 times)

Parsad

  • Administrator
  • Hero Member
  • *****
  • Posts: 8986
Chou America Funds!
« on: July 28, 2010, 04:21:01 PM »
For U.S. Fairfax shareholders, who always wished to invest in a mutual fund run by a manager with Hamblin-Watsa pedigree, you now can!  The Chou America Funds, managed by my friend Francis Chou, have launched and are now available to U.S. residents.  About time they heard about Francis down there!   ;D  Cheers!

http://chouamerica.com/index.html
No man is a failure who has friends!


yseric

  • Newbie
  • *
  • Posts: 42
Re: Chou America Funds!
« Reply #1 on: July 28, 2010, 04:38:40 PM »
thanks much,, Chou is definitely a good manager

beerbaron

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1423
Re: Chou America Funds!
« Reply #2 on: July 28, 2010, 05:08:00 PM »
I might go back to university in January and will likely not have any time for managing my portfolio. Chou is one of the few prospects that I consider to give my money to, like all canadian funds the management fees are quite high tough.

BeerBaron

misterstockwell

  • Guest
Re: Chou America Funds!
« Reply #3 on: July 29, 2010, 06:08:13 AM »
Does Chou invest similarly to Hamblin-Watsa? Do they keep in communication? Is this as close as we can get to having HW run our money? :)

Parsad

  • Administrator
  • Hero Member
  • *****
  • Posts: 8986
Re: Chou America Funds!
« Reply #4 on: July 29, 2010, 09:53:19 AM »
Does Chou invest similarly to Hamblin-Watsa? Do they keep in communication? Is this as close as we can get to having HW run our money?

Yes to all!  Your only other option is through Fairfax shares directly, especially now that Northbridge and Odyssey are no longer public companies. 

There's a reason why Francis is included in our panel of investment managers at our annual Fairfax Financial Shareholders Dinner, and it ain't because he's cute and cuddly.  Although most of the women at Fairfax would probably say he is!   ;D  It's because he was an integral part of the HW team for many years, and he probably knows how Prem thinks as well as anyone. 

I would put Roger Lace, Brian Bradstreet, Chandran Ratnaswami, Francis Burke and Tony Hamblin in there as well.  That crew has all worked together since well before day one.  I think Paul Rivett and Sam Mitchell are right in there too now in such a short period of time...both have alot of responsibilities at Fairfax...and are absolutely integral.  It's one hell of team!  Cheers!

No man is a failure who has friends!

misterstockwell

  • Guest
Re: Chou America Funds!
« Reply #5 on: July 29, 2010, 10:44:35 AM »
That's good to hear.

This appears to be a good addition to the "possible investments" list. The prospectus allows him great leeway to invest how he pleases, including fixed income, distressed entities, foreign shares, shorting, etc.

FYI--there are only CUSIP numbers now, no symbols, an e-mail address that doesn't work(as of last night--I did inform them today), and no idea when available through the discount broker fund-marts.

schin

  • Full Member
  • ***
  • Posts: 154
Re: Chou America Funds!Fees?
« Reply #6 on: August 01, 2010, 02:54:20 PM »
Is anyone concerned about the "Total Annual Fund Operating Expenses" of 5.22%?

I know it's capped now at 1.75%, but even 1.75% is pretty high.  When it becomes uncapped, 5.22% is a huge hurdle.

Thoughts?

misterstockwell

  • Guest
Re: Chou America Funds!
« Reply #7 on: August 01, 2010, 08:39:21 PM »
Definitely a concern and I will ask about it once someone is available that actually knows something! Waived fees can be indefinite. or not.

NormR

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 639
Re: Chou America Funds!Fees?
« Reply #8 on: August 02, 2010, 06:40:02 AM »
Is anyone concerned about the "Total Annual Fund Operating Expenses" of 5.22%?

I know it's capped now at 1.75%, but even 1.75% is pretty high.  When it becomes uncapped, 5.22% is a huge hurdle.

Thoughts?

Seems likely a matter of the new fund's size.  i.e. high fixed costs (legal, etc) compared to very low starting assets under management.  As the assets grow from a very low base, the % should decline dramatically. 

I very much doubt that the fee would become uncapped in the near term.  The fund would more likely be closed should it fail to attract enough assets to make it worthwhile in the next few years.  Also, the fees on Chou's other small funds didn't rocket higher.  So, I think history should provide more than a little comfort in this case.

misterstockwell

  • Guest
Re: Chou America Funds!
« Reply #9 on: October 18, 2010, 07:12:20 AM »
I wish they would get their butts in gear and make this fund available at the discount brokerages. It opened July 1st. They don't even have a symbol yet! Come on guys.