Benj Gallander, president of Contra the Heard Investment Letter 
FOCUS: Contrarian investing
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MARKET OUTLOOK

Markets have been skipping handily through September, historically the worst month of the year. But October as we know has featured days that were major routs. With markets at elevated levels, playing some defense by taking some big winners off the table could prove wise.

TOP PICKS

BLACKBERRY (BB.TO)
Bought in 2013 at $10.46.
EO John Chen has been setting goals and hitting them. This month he has done deals with companies such as Delphi and Timex, both major players. This outfit is backed by the deep pockets of Fairfax Financial. A double from this level seems reasonable.

AEGON (AEG.N)
Bought in 2014 at $7.64.
This huge Dutch insurance and wealth management company operates in over 15 countries. It is profitable, pays a handsome dividend and has improved its solvency ratios. Once upon a time ago this stock traded at almost $60.

QUARTERHILL (QTRH.TO)
Bought in 2016 at $1.98.
The former Wi-Lan has been doing takeovers and is dramatically morphing into a company that, instead of being a “patent troll," is involved in the Internet of Things. Fortunately the company had over $100 million in the kitty and zero debt to fund this process. About $44 million remains with only nominal debt taken on. The dividend will help returns while a recovery in the stock prices is anticipated.
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BB Y N N
AEG Y N N
QTRH Y N N

PAST PICKS: JUNE 28, 2016

FIRST US BANCSHARES (FUSB.O) - Changed its name from United Security Bancshares

  • Then: $8.62
  • Now: $11.20
  • Return: 29.93%
  • Total return: 31.13%

INNODATA (INOD.O)

  • Then: $2.28
  • Now: $1.45
  • Return: -36.40%
  • Total return: -36.40%

REITMANS (RET.TO)

  • Then: $4.40
  • Now: $4.14
  • Return: -5.79%
  • Total return: -1.05%

TOTAL RETURN AVERAGE: -2.10%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
FUSB Y N N
INOD Y N N
RET Y N N

FUND PROFILE

President's Portfolio Contra the Heard

1 year return: 19.8% 
5 year annualized return: 26.9% 
15 year annualized return: 19.8%

*Not based on reinvested dividends and net of fees

TOP FIVE HOLDINGS

  1. First United Corp.: 11.1%
  2. Bank of America: 10.8%
  3. GSE Systems: 9.1%
  4. ATS Automation: 8.3%
  5. First US Bancshares: 6.9%


WEBSITE:  www.contratheheard.com