Mike MacBain
Member since: Dec '10
Founding Partner at
East Coast Funds Management

Latest Top Picks

Long Telus Corp 4.40% 4/2043 bonds and Short Gov’t Of Canada 4.00% 6/2041 bonds. (Top Pick May 15/14, Up 1.43%, Down 4.19%) Designed to make money in an interest rate rising environment.
Long Videotron 5.625% 6.2025 Bond and Short Gov’t of Canada 1.50% 6/2023 Bond. (Top Pick May 15/14, Up 2.77% / Down 2.03%) Triple ‘B’ company. If government convinces them to be the 4th national carrier, their wireless will have to be standalone entity.
Long Bundesrepublik Deutchland 3.25% 1/2020 Bond and Short Deutsche Bank 5.00% 6/2024 Bond. (Top Pick May 15/14, Up 2.07% / Down 2.75%) A defensive trade. The banking sector has turned around a little in Europe. It would no longer be his top pick.
Long Leisureworld Seniors Care 3.474% Secured Debentures due 2021, Short Gov’t of Canada 3.5% Jun 2020 Bond. He only cares about LW-T and the short is to take care of interest rate exposure. There is the potential for a very big capital gain on LW-T. The government has stopped giving new licenses for this business. It reduces competition. There are 80k long term care beds in Ontario and a waiting list of 21k. They will be 100% occupied because of the waiting list. It is like a regulated utility with increasing profit.(Stock price will not match as this is a bond.)
Long Loblaw 4.86% Senior Unsecured Debentures due 2023, Short Government of Canada 1.5% of June 2023. The longer bond exposure is taken out by the short position. Loblaw’s is going to grow out their small stores in urban centers and they will be cross selling with Shoppers Drug Mart. They are a cash flow machine. They are committed to reducing leverage.(Stock price will not match as this is a bond.)