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Chou Associates 13-F


Parsad

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Francis has sold off about 80% of his BAC warrants, doubled down on DELL, added MBIA and eliminated Office Depot.  Cheers!

 

http://www.sec.gov/Archives/edgar/data/1389403/000114420413008799/v335242_13fhr.txt

 

Interesting.  In his US fund, he still owns quite a few BAC warrants.  Sanj, any thoughts as to why the difference?

 

Top Holdings

 

As of December 31, 2012

Top 10 Holdings percentage of assets

Overstock.com Inc. 30.4%

Resolute Forest Products Inc. 15.8%

MannKind Corp. 10.5%

Sears Holdings Corp. 8.9%

Bank of America warrants 8.7%

UTStarcom Holdings 7.3%

MBIA Inc. 5.7%

JPMorgan Chase warrants 5.3%

ASTA Funding Inc. 3.6%

Wells Fargo warrants 1.9%

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Francis has sold off about 80% of his BAC warrants, doubled down on DELL, added MBIA and eliminated Office Depot.  Cheers!

 

http://www.sec.gov/Archives/edgar/data/1389403/000114420413008799/v335242_13fhr.txt

 

Interesting.  In his US fund, he still owns quite a few BAC warrants.  Sanj, any thoughts as to why the difference?

 

Top Holdings

 

As of December 31, 2012

Top 10 Holdings percentage of assets

Overstock.com Inc. 30.4%

Resolute Forest Products Inc. 15.8%

MannKind Corp. 10.5%

Sears Holdings Corp. 8.9%

Bank of America warrants 8.7%

UTStarcom Holdings 7.3%

MBIA Inc. 5.7%

JPMorgan Chase warrants 5.3%

ASTA Funding Inc. 3.6%

Wells Fargo warrants 1.9%

different rules apply.

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I posted this on the BAC thread, but it might be worth repeating here.

 

Weighting in a fund is based on cost. To illustrate; for a fund of $100 I can put $10 into a stock, which with a share price of $1 means I can buy 10 shares for my fund. If the share tanks to 50 cents then I cannot add to my position. However, what I can do is sell my shares and buy back the position 30 days later, thereby establishing a new cost base, and in this case I can now buy 20 shares.

 

So it if he is selling only in one place and not the other and his cost base is materially higher in the place he is selling then it is a safe bet to assume, that is what is happening. So, selling to buy more.

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