O'Leary shows the Decade of Daddy Mirror Fund some love

It is said that the greatest compliment that a person can pay to another is to imitate their actions. With that in mind, it was heart-warming to see the Globe and Mail’s “BNN Market Call” story this morning, highlighting several of Kevin O’Leary’s stock market picks.

For those of you who aren’t paying attention, we launched a Decade of Daddy Mirror Fund™ on July 2nd to attempt to replicate the returns that the Dragon of all Dragons is promising retail investors via the June IPO of the appropriately-named O’Leary Global Equity Income Fund, known as the Decade of Daddy Fund™ in these parts (OGE.UN:TSX).

With that background, it was a pleasant surprise to see KO recommend JPMorgan at the recent price of US$49.63/share. KO’s reasoning?

“JPMorgan will now have the No. 1 deposit and credit card franchises after the Bear and WaMu deals.”

As I recall, Bear Stearns had neither a deposit base nor a credit card product…details, details. He must’ve had WaMu on his mind. And at these prices, JPMorgan’s dividend yield is just 3%, which seems skinny when compared to KO’s apparent IPO promises of focussing on high yielding stocks (it yielded 4.8% in July).

But the fact that KO loves JPM is all that really matters. After all, we added it to the Decade of Daddy Mirror Fund on July 14th at US$31.69 (see prior post “Decade of Daddy Mirror Fund bi-weekly report” July 25-08). Since July 14th it has risen 56%. KO, welcome on board the JPM train, even at these levels.

The DTM also highlighted KO’s 3 stock picks from the BNN Market Call piece on August 25th:

– Diageo, down 3%
– National Grid, down 4%
– Veolia Environmental, down 25%

This may explain why OGE’s Net Asset Value is down to $10.23 as of yesterday’s close, 15% below the $12 IPO price. Regardless, the units themselves are still trading at the IPO price, and we are only to happy to share our winners with all and sundry.

And here I thought we were the ones running the mirror fund.

MRM
(disclosure – this post, like all blogs, is an Opinion Piece)