Francis Chou - AR2009

[omagh]

http://choufunds.com/pdf/AR09.pdf

After the distribution of $1.53, the net asset value (“NAVPU” or “NAV”) of a Series A unit of

Chou Associates Fund at December 31, 2009 was $68.46 compared to $53.96 at December 31,

2008, an increase of 29.7%; during the same period, the S&P 500 Total Return Index increased

8.6% in Canadian dollars. In $US, a Series A unit of Chou Associates Fund increased 51.1%

while the S&P 500 Total Return Index increased 26.4%.

 

After the distribution of $0.52, the net asset value (“NAVPU” or “NAV”) of a Series A unit of Chou Bond

Fund at December 31, 2009 was $8.51 compared to $6.34 at December 31, 2008, an increase of 42.5%;

during the same period, Citigroup WGBI (World Government Bond Index) All Maturities ($CAN) was down

11.5% and Barclays U.S. Corporate High Yield Index ($CAN) returned 34.4%. In $US, a Series A unit of

Chou Bond Fund returned 65.9% while Citigroup WGBI All Maturities returned 2.6% and Barclays U.S.

Corporate High Yield Index returned 58.2%.

 

 

-O

[Parsad]

Always great information in Francis' letters.  I encourage everyone to read them, in particular Chou Associates, Asian and Bond fund letters.  Cheers!

[oldye]

"The other country we have concerns about is China. Its stimulus measures were three times that of

the U.S.A and most of the stimulus funds went into infrastructure. From whatever reports we can

gather, we hear that there is massive overproduction in almost all sectors, rampant speculation in

real estate and that we should take with a grain of salt all government supplied economic numbers."

[goldfinger]

Chanos gave an excellent presentation about China a few months ago:

http://www.youtube.com/watch?v=99HNFCn5RP8

I found his views pretty good. I have always believed China would go through some

very severe crashes during its ascent and now might be one of those times. We'll see.

Should we call it a "gray swan"?