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He is one of Canada's most successful mutual fund managers and also one of the most modest. At the age of 51, Francis Chou is in charge of $1.2-billion of other people's money. He is both a top stock picker and a record-setting bond manager.

half a dozen co-workers chipped into a pool that totalled $51,000 and created the fund that became Chou Associates.

The original investment club was converted to a mutual fund in 1986 and, over the next 20 years,

. “Will I pay up for a stock? Absolutely not!” he laughs. “I would rather lose half my unitholders than lose half my unitholders’ money.”

claims no industry specialization

given that he worked as a technician for Bell Canada before he took to managing money in the early 1980s. He has since earned a CFA designation.

The fund has been managed by Francis Chou since it went public in 1986. Prior to this it was managed as part of a private investment club. Mr. Chou is perhaps unusual among money managers in that he manages both the Associates and RRSP funds in his spare time. When he is not adding value for his investors he is a vice-president of Fairfax Financial.

In late 2002 the Associates fund received a $50 million investment from Fairfax, increasing the fund's assets by almost a factor of six. To avoid any potential conflicts, or the appearance thereof, Mr. Chou has entered into appropriate arrangements with Fairfax concerning trading activities. Furthermore, he is foregoing any compensation or benefits arising from his position as a Fairfax executive.

a contrarian deep value style with discipline. Mr. Chou favours well-managed companies that have a solid record of prudent capital management and at least ten years of sustained return-on-equity of greater than 15%. Following a self-described "Margin of Safety" credo, he also looks for a stock price that is far below what a rational investor would pay for the company. Once purchased, stocks are generally held for the long term, as illustrated by the fund's low 28% average turnover.

He has only a grade 12 education and used to labor as a Bell Canada repairman. He has never worked for a big bank or a mutual fund company.

best mutual fund manager in Canada