Decade of Daddy Mirror Fund bi-weekly report

Here is the bi-weekly report, and it is much better than the last one. We are rolling again, and it isn’t just because OMERS has launched a hostile bid for one of our portfolio names. Over at Decade of Daddy Central, the unit price of the O’Leary Global Equities Income Fund (OGE-UN:TSX) (aka the Decade of Daddy Fund™) is trading at a 16.6% premium to NAV as the funds’ net asset value dropped to $10.7992 ($12 IPO unit price).

We’ve made money in:

BMO (+16%), Bristol Myers (+3%), BNS (+4%), CIBC (+14%), Duke (flat), JP Morgan (+24%), Eli Lilly (+2.5%), MKS (+27%) and Teranet (+32%).

In the red column:

CDN Oil Sands Trust (-11%), Eli Lilly (-3%), Merck (-9%); Spectra Energy (-11%) and the newly-added Thomson Reuters (-7%). Gosh this money management thing is tough, though! And stressful.

On the whole, we are up 4.6% (versus +3.6% at last report {see prior post “Decade of Daddy Mirror Fund bi-weekly report” August 24-08}) since the “mirror portfolio” was launched on July 2nd.

During the same period, the Dow Jones Index is down 1.7%. Of the $40 million we set aside, $9.5 million remains in cash. We received $226k in dividends and distributions from BMO, Bristol Myers, CDN Oilsands and Teranet in July and August.

Daddy is gettin’ paid while he waits! But with the OMERS hostile for Teranet, we didn’t have to wait very long. With Teranet trading above the proposed OMERS $11 offer price, the question is: sell into the strong $11.47 quote or wait to see if there’s a higher offer in the weeds?

MRM