Decade of Daddy Mirror Fund Bi-weekly Report

Here is the bi-weekly report, and it continues to hold good news for those who’ve decided to take this track, rather than throw your extra change into the coffers of the O’Leary Global Equity Income Fund (OGE.UN:TSX). Since our Mirror Fund began on July 2nd, we are up 9.8% on the original $40 million Mirror Fund (ie., play money), despite carrying a bunch of cash from the start…and despite the world almost coming to an end last week.

Over at Decade of Daddy Central, the Net Asset Value of the O’Leary Global Equity Income Fund (aka the Decade of Daddy Fund™) is $10.5181, well off earlier reported NAVs, which means the portfolio hasn’t weathered the recent volatility very well. The units, however, are trading at $12.30, which is a handsome 16.9% premium to NAV (the NAV is the actual value of the stocks in the portfolio that the fund has acquired), and also 2.5% above the June IPO price. So that’s something I guess. KO has also recently launch an Infrastructure Fund, if you’d like to help him expand his empire.

We’ve made money in:

BCE (+9%), BNS (+11%), CIBC (+15%), Duke (+3%), JP Morgan (+48%), Eli Lilly (flat), Merrill Lynch (+62%), MKS (+26%) and Teranet (+27%). We locked in our ~$6/share profit on 125,000 BMO early last week (see prior post “Decade of Daddy Mirror Fund” September 16-08).

In the red column:

Bristol Myers (-1%), CDN Oil Sands Trust (-14%), Eli Lilly (-3%), Merck (-16%); Spectra Energy (-3%) and the newly-added Thomson Reuters (-5%).

As mentioned, we are up 9.8% (versus +4.6% at last report {see prior post “Decade of Daddy Mirror Fund bi-weekly report” August 24-08}). During the same period, the Dow Jones Index is up all of 6 points, or 0%. Of the $40 million we set aside, $5.8 million remains in cash.

MRM