Decade of Daddy Mirror Fund Bi-weekly Report

Given the performance of international equities, it was too much to assume that we could stay in the black over the past two weeks. But, despite the considerable pounding of Oil, our Decade of Daddy Mirror Fund™ (see prior post “Decade of Daddy Mirror Fund” July 2-08) has kept its head above the $40 million Mendoza line given the performance of our currency, which is helping our numbers since about half of our investments are in US$.

In the Mirror Fund, we’ve made money in (original currency):

BCE (+0.4%), Goldman Sachs Subdebt (+6%), JP Morgan (+23%), Royal Bank (+15%) and Teranet (+22%).

Since the fund began we’ve locked in our profits on BMO ($775k, plus $87.5k divi), CIBC ($242k) and Merrill Lynch ($799k) as you’ve read in prior reports.

In the red column (original currency):

Bristol Myers (-17%), BNS (-2%), Berkshire Hathaway (-14%), CDN Oil Sands Trust (-50%), Duke Energy (-13%), Eli Lilly (-31%), Merck (-25%); MKS (-2%), Spectra Energy (-16%) and Thomson Reuters (-22%).

Since we launched the mirror fund, the Dow Jones Index is down 2,530 points, or 22%. Our Decade of Daddy Mirror Fund is up 8% during the same timeframe.

Kevin O’Leary and his merry band at the real Decade of Daddy Fund™ have watched the net asset value of the O’Leary Global Equity Income Fund (OGE-UN:TSX) slip from the $12 IPO price to $9.5181, a 21% decline. Once again, remarkably mirroring the 22% drop in the Dow Jones over the same time period (see prior post “Decade of Daddy Mirror Fund update” October 10-08). The actual units have traded down merely 4%, which means the units are valued at a 21% premium to the value of the assets within the fund itself.

By comparison, the shares of Onex Corp. (OCX:TSX) are trading at a 50% discount to NAV, according to a recent research report by GMP Securities. Now there is a dichotomy!

MRM