A Comment -- General Comments From an Expert (A Commentary)

Sprott Small Cap Hedge Fund has one of the best small cap pickers in Canada. Has a 20 Year track record of about 20% a year.

West Face Capital Opportunities Trust. Have been running a managed account for 12 years but in the last couple of years brought out a fund that other people can Buy. Mainly institutional before but is now going on the platform of a lot of the brokerage firms. A truly multi-strategy fund.

Dynamic Power Hedge Fund? Fantastic money manager and highly respected. Aggressive growth momentum based. Takes very concentrated positions such as having 15%-18% positions in one stock. Because of this it will be very volatile. Has some non-resource things in the portfolio.

(A Top Pick Nov 2/10. Up 5.16%.) Vertex Fund.

(A Top Pick Nov 2/10. Up 4.33%.) Northpole Multi-Strategy Fund:

(A Top Pick Nov 2/10. Down 2.52%.) CI Global Opportunities Fund. Slipped because it wasn’t positive on the markets and was a Bear.

Resolute Funds. Had a lot of natural gas in the portfolio so it under performed. Has more gold now. Tom Stanley is one of the best stock pickers in the country. Thinks he will outperform over time extremely well.

McElvaine Investment Trust. Tim McElvaine has a fantastic track record. He got caught up in the 2008 problem because small cap stocks got caught up in the problem no matter what you were in. Also resource stocks have been on fire and deep value investors don’t go into resources too much.

Front Street Special Opportunities Fund? Actually a mutual fund, which is good news because you can buy it for as little as $5,000. More of a hedge fund nature because it’s very concentrated on small cap stocks. Has the best 15-year track record of any Canadian fund. Oil/gas and mining exposure will the majority of be what’s in the portfolio. If it gets beaten up, that’s a good time to Buy.

Which type of Hedge Funds will outperform in the next couple of years? Hedge funds that are nimble, flexible and small and that can take advantage of inefficiencies in the market.

(A Top Pick Jan 21/10. Up 29.49%.) BMG Bullion Fund. This is a fund that actually holds bullion. Likes the diversification of 1/3 platinum, 1/3 gold and 1/3 silver. Less volatile than gold stocks.

Mid-cap, small caps or large caps? If you are an independent investor, you’re much better off to stick with large caps. If you have a decent broker, they could give you some mid-cap names. Small caps are very difficult.

Some names for income? Expecting banks to start increasing dividends. Crescent Point (CPG-T) and Pengrowth (OGF-T) nave very good yields. Also the pipelines Enbridge (ENB-T) and Trans Canada (TRP-T) have good yields wit the potential of dividend increases. (See Top Picks.)

Market. Relatively bullish and is pretty much fully invested. Expect we will go through the old highs either this year or next. A little over extended shorter term so has been taking some money off the table in some metals and fertilizers and moving it back to the golds and oils. Earnings and market should go through their old highs next year. About 70% invested.

Growth in India and China. A 10 to 20 year story. Will have pullbacks and will get overbought but it’s a long-term story.