Decade of Daddy Mirror Fund update

It has been so long since I provided you with an update, you’d be forgiven if you’d thought I had shut down the Decade of Daddy Mirror Fund. I did miss producing the Q3 report, but after a year plus of sitting on my hands, I actually did a trade this week. On the back of Federal Reserve Chair Bernake’s comforting words, I essentially doubled our stake in TD Bank, from 36,000 shares to 66,000. With more than $5 million of cash hanging around for the longest time, I thought it was time to pull the trigger on something other than a bond. This was our first new commitment to anything since May 2011, when we bought $3 million of some 8% converts. But as stocks go, it was the first new share acquired since adding BMO in December 2010.

A lack of conviction, perhaps, but there’s no churn here (see prior posts “Money manager churn alert!” Sept. 8-09 and “Portfolio churn: how other funds stack up” Sept. 11-09), to say the least.

We’re still carrying more than $3 million in cash, so if you have any ideas…fire them over. Remember, as much as you don’t mind getting paid (via dividends or coupon) to wait, it’s better if your stocks eventually go up, too. At last check, the Decade of Daddy Mirror Fund is up 47.9% since inception to $59.2 million. That a 2% gain since last we touched base (see prior post “Decade of Daddy Mirror Fund Annual Report #4” Aug 15-12)

Over at the real Decade of Daddy fund, the O’Leary Global Equity Yield Fund, Kevin O’Leary’s trades haven’t been as lucky. According to KO’s own disclosure, performance since inception of this fund (December 16, 2009) is -3.6%/annum. More importantly, had you put your $40 million with KO and not our mirror fund, your nest egg would now be worth just $36,020,000, according to O’Leary fund disclosure.

That must break the hearts of his investors and Investment Advisors when the Dow Jones and S&P 500 are up 23% and 25% since Dec. 16/09, respectively.

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