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Discussion Starter #1 (Edited)
I'm interested in finding out if any posters have any information or know anyone who invested with Jim Chuong (aka Rickson9). The reason I ask is because I was recently told that Mr. Chuong isn't simply a private investor. Despite a disclaimer that "all information is for entertainment purposes only", Mr. Chuong apparently invests money on behalf of clients.

Here's a note from his own Facebook page:

"Before linking the MoneySense interview, the following are a few housekeeping notes for those in my investment partnership:

A. The minimum investment into the partnership will be increased to $100,000 on January, 1st 2008.

B.The fee-for-performance in 2007 will be reduced. The fee charged will be 25% of profit over 6%. Previously the benchmark was 2%."
 

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I see he got banned. Did I miss a good show?
I would never give money to some guy on the internet with no credentials (don't you have to be a CFA to manage money?), and also has a snitty attitude.
 

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Discussion Starter #4
I see he got banned. Did I miss a good show?
I would never give money to some guy on the internet with no credentials (don't you have to be a CFA to manage money?), and also has a snitty attitude.
FT and I had to ban Rickson9 because he refused to remove the link to his website that repeatedly advertised seminars. Many readers had a problem with it as the seminars were obviously commercial. I have since learned that Rickson9 is possibly trolling for clients for his "investment partnership" and poster's concerns were not entirely unfounded.

I want to clarify that I have no interest in this thread in talking about matters that, in my opinion, are private affairs of Jim Chuong. What I'm interested in, however, is finding out if anyone has invested with Mr. Chuong's partnership or if they know of anyone who did.
 

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CC, i'd seen all that - and much more - months ago.

i didn't post anything here because there's a remote chance of a lawsuit. In this vein, may i urge you to be extremely careful.

presumably the reason for upping the minimum contribution from $25K to $100,000K as of january 2008 was to snag accredited investors only. These are wealthy & presumably sophisticated individuals who can be invited to take part in financial schemes with less documentation than the securities acts require must be provided to mom-and-pop investors. The authorities are assuming that an accredited investor has the ability to see through shams & scams. In ontario, the minimum investment from an accredited investor is 100,000k, but this amount varies from province to province.
 

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Discussion Starter #7
i didn't post anything here because there's a remote chance of a lawsuit. In this vein, may i urge you to be extremely careful.

presumably the reason for upping the minimum contribution from $25K to $100,000K as of january 2008 was to snag accredited investors only. These are wealthy & presumably sophisticated individuals who can be invited to take part in financial schemes with less documentation than the securities acts require must be provided to mom-and-pop investors. The authorities are assuming that an accredited investor has the ability to see through shams & scams. In ontario, the minimum investment from an accredited investor is 100,000k, but this amount varies from province to province.
Thanks for the warning. I'll be extremely careful.

Does anyone know if regulatory filings are not required if you offer investments to accredited investors and not to the general public.
 

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CC: I must say I am really surprised you did not know this.

As for registration: private investment clubs are unregulated in Ontario (and I think all across the country).

Investments directed to "accredited investors" (this term varies from province to province) are regulated, but the level of disclosure and the prospectuses are different than for other investments. Here's an article from when the "accredited investor" category was created which sets out the accredited investor rules. You can see that filings are still required - however, they are significantly less than for standard retail investment offerings.

If I had to guess, I'd wager the Chuong Investment Partnership is a private investment club charging membership fees which may be calculated as a percentage of earnings. I do not think this club is "managing other peoples' money" per se -- I think club members are pooling their money and making administrative/membership payments to some members in exchange for administrative tasks.
 

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Here are the accredited investor rules for individuals in Ontario:

Accredited investors include the following:

* individuals who beneficially own, either alone or with a spouse, cash, securities, insurance contracts and deposits which have an aggregate realizable value which exceeds $1 million (before taxes but net of related liabilities);

* individuals whose net income before taxes exceeds $200,000 in each of the last two years (or $300,000 with a spouse), and who have a reasonable expectation of exceeding that income level in the current year

There are lots of non-individual accredited investor inclusions, too - for example, corporations, banks, etc. But if you are an individual, those are the rules in this province.
 

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filing where? i don't know for sure. I think this is a question to put directly to the ontario securities commission.

in my limited experience, hedge funds that sell only to accredited investors put out awesome prospectusus. The best & the biggest of law firms draft these documents, and they are mind-boggling indeed. What i don't know is whether such documents are filed for public viewing on SEDAR. I believe there is also a part of SEDAR that is not for the general public ... (sigh.)

.
 

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Discussion Starter #12
CC: I must say I am really surprised you did not know this.

As for registration: private investment clubs are unregulated in Ontario (and I think all across the country).

Investments directed to "accredited investors" (this term varies from province to province) are regulated, but the level of disclosure and the prospectuses are different than for other investments. Here's an article from when the "accredited investor" category was created which sets out the accredited investor rules. You can see that filings are still required - however, they are significantly less than for standard retail investment offerings.

If I had to guess, I'd wager the Chuong Investment Partnership is a private investment club charging membership fees which may be calculated as a percentage of earnings. I do not think this club is "managing other peoples' money" per se -- I think club members are pooling their money and making administrative/membership payments to some members in exchange for administrative tasks.
Thanks for the clarification. You might be right about the "Partnership" set up as an investment club. TIC apparently stands for (or used to stand for) Toronto Investment Club.
 

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There was a blurb about him on PFBlog in 2005:
I don't know where they got the info , and bear in mind that it is from 2005.

This is the whole link.

http://www.pfblog.com/nakedpicks/4325_fatboys_formula_for_diversification.shtml


Jim Chuong has setup his Chuong Investment Partnership much like Buffett's. He charges a 33.3% fee on profits above 2%. Unfortunately, the partnership is limited to Canadian citizens only. And only 35 seats are available.

Who is he? How did he get to the point of managing money for other people?

He has a degree in materials engineering from U of Toronto, not in finance. With a materials engineering degree, you would think he would work in some engineering firm. But no, he started a company with a friend that offered Internet programming services.

Here's a guy who graduated with a material engineering degree in 1997, became a computer programmer in 1998 and started his investment partnership in the same year.

Jim Chuong is a self-taught investor with no formal training in finance. His "mentors", if you will, are books such as Peter Lynch's One Up On Wall Street and Benjamin Graham's The Intelligent Investor. His investment partnership earned an average annual return of 22.9% since inception in 1998.
 

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Discussion Starter #14

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Humble , re-read my post , I said I didn't know where they got the info.;)

I didn't write it.

What makes you think I believe any of it?:confused:
 

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Discussion Starter #18
Hmmm... it gets curious. First, the "Chuong Partnership" invests in small companies and compares results with the large cap S&P 500. The past ten years hasn't been kind to large-cap stocks. The appropriate benchmark would be a small cap index such as S&P 600 or (with some trepidation) the Russell 2000.

Second, the S&P returns quoted are without dividends. Nice try but it's total returns that matter, not simply changes in price levels.

Third, it is not clear if the "Partnership" returns are after expenses because a 33.3% fee over 2% is a remarkably high fee structure.
 

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"Third, it is not clear if the "Partnership" returns are after expenses because a 33.3% fee over 2% is a remarkably high fee structure."

This is the guy that advised never to use financial advisors because they take too big of piece of the pie. Even a 25% piece when Mr. Market decides to move his stocks up above 6%, is still a supersized helping if you ask me.
 
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