Hedge fund manager and chief investment officer of BluMont Capital Corp.
HOW I'D INVEST $100,000 RIGHT NOW: I would buy all high-yielding dividend stocks—my cut-off would be about a 4% yield. I would buy BCE, Telus, Gibson Energy, MI Developments, Student Transportation, CI Financial, the Boyd Group and Labrador Iron Ore Royalty. A bunch of the companies I have picked also have potential to be taken over. It’s not unthinkable that one day Bell and Telus will get together.
BEST INVESTMENT: I have done well with Detour Gold, which I bought at around $5 a share. I would have bought it several times and taken profit several times while I owned it. The high was $39 a share in September; I sold some above $30, and have trimmed my position a bit.
WORST INVESTMENT: Going into 2011, I was feeling bullish on gold and that it’d do well in this kind of environment. Instead of buying gold, which would have been the smart thing to do, I stayed with my gold exploration stocks. But they are looked at as a risky asset in this environment, so they got pummelled.
WHAT KEEPS ME AWAKE AT NIGHT: It is a pretty nerve-wracking time. Things can unravel pretty quickly in Europe, and I think there is still the possibility five years down the road that the euro zone doesn’t exist. I think they would actually be better off if they were back to their own currencies with a trading union.
MY STRATEGY FOR THE YEAR AHEAD: I am running a more defensive portfolio. Historically, I have relied on cash a lot when times were bad; now, rather than holding cash, I want to be invested in high-yielding stocks. I am thinking that this financial mess is with us for the next three years. I can’t sit in cash because there is not enough yield.
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