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Short interview with Francis Chou


StubbleJumper
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Okay, so Francis is technically no longer working for FFH, but he has historically been a tremendously important contributor to the company's success:

 

 

 

http://www.theglobeandmail.com/report-on-business/rob-magazine/francis-chou-look-for-a-good-deep-value-fund/article7805229/

 

Just remember, if for some reason Fairfax needed Francis, I don't think it would take even an arm twist from Prem to get him there.  And even though technically Francis does not work at Fairfax, I would not be surprised if he has a significant amount of input into Fairfax's investments simply as an advisor, shareholder, friend of the company and loyal sounding board.  Cheers!

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Now the million dollar question you asked in the past, when will Fairfax officially bring Chou back in the fold by purchasing Chou Associates!!!  :) 

 

Tks,

S

 

Okay, so Francis is technically no longer working for FFH, but he has historically been a tremendously important contributor to the company's success:

 

 

 

http://www.theglobeandmail.com/report-on-business/rob-magazine/francis-chou-look-for-a-good-deep-value-fund/article7805229/

 

Just remember, if for some reason Fairfax needed Francis, I don't think it would take even an arm twist from Prem to get him there.  And even though technically Francis does not work at Fairfax, I would not be surprised if he has a significant amount of input into Fairfax's investments simply as an advisor, shareholder, friend of the company and loyal sounding board.  Cheers!

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I am asking Parsad when Fairfax would purchase Chou associates so he can officially be on Fairfax's payroll. (Please add a bug in Prem's ear)  To advert conflict of interest, Francis does not own Fairfax part of his fund. 

 

Thanks,

S

 

http://en.wikipedia.org/wiki/Fairfax_Financial

 

Chou Associates Fund

In late 2002, Fairfax invested $50 million in Chou Associates Fund and another $50 million in the first half of 2003 (Fairfax apparently owns more than 26% of Chou Associates Fund).

 

FFH  invested into Chou associate fund.  I bealive  FFH owns close to 15 % of the fund . In my view ,due to conflict of interst Francis cannot  “openly” work for FFH.

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I am asking Parsad when Fairfax would purchase Chou associates so he can officially be on Fairfax's payroll. (Please add a bug in Prem's ear)  To advert conflict of interest, Francis does not own Fairfax part of his fund. 

 

Thanks,

S

 

http://en.wikipedia.org/wiki/Fairfax_Financial

 

Chou Associates Fund

In late 2002, Fairfax invested $50 million in Chou Associates Fund and another $50 million in the first half of 2003 (Fairfax apparently owns more than 26% of Chou Associates Fund).

 

FFH  invested into Chou associate fund.  I bealive  FFH owns close to 15 % of the fund . In my view ,due to conflict of interst Francis cannot  “openly” work for FFH.

 

Hi Ourkid,

 

I hope Prem and Francis eventually merge Chou Funds into Fairfax and Francis rejoins Hamblin-Watsa...maybe even sits on the board at some point, as everyone is getting older.  They could even rename them as "Fairfax Funds" and there is no reason why Fairfax could not have a money management business subsidiary.  They all came from that industry, and they all know how lucrative it is, and how the leverage in the hands of good managers is pretty amazing.

 

But who knows...maybe Francis likes his own little world away from the hub-bub!  Cheers!   

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But who knows...maybe Francis likes his own little world away from the hub-bub!  Cheers! 

 

I suspect that is the case.  Francis has had the fund longer than FFH has been under Prem's management.  My guess is he likes it that way.

 

Gets a little circular though.  Francis owns FFh shares, which in turn are the major shareholder of his funds.  Talk about eating your own cooking!

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It is expensive, taken to consideration that he does not have any redundancies such as marketing, risk monitoring  department, analysts ect…. He is one man running the fund.

So, the fee should be lower in Canada and US. On the other hand, his fee are reasonable if you compare with Canadian Mutual Fund Industry.

If FFH decides to sell Chou associates fund, they would receive distribution in kind .the arrangement is that owners who owns 10% or more would not get cash upon the selling , but in –kind.

 

 

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Why are his American funds so expensive? (CHOEX, CHOIX)  1.5%

I know it's small AUM but at 1.5% I just can't do it. Maybe at 1....

 

 

The management fee is 1% for both funds.

 

Until recently, the MER for the funds was running at 1.5% due to admin. expenses with low AUM. The actual MER was higher than 1.5% but has been capped at that rate by Francis. The most recent MER on the Opportunity Fund is less than 1.5%.

 

 

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