Income trusts, optimism, AIC

This morning I blogged about the recently announced tax on income trusts. I've since been out running and a thought hit me that I can't shake from my mind.

I don't know much about investment or mutual funds, but optimism really does pay off some times. At least it did for Michael Lee-Chin of AIC, a mutal fund firm.

I remembered reading that Lee-Chin decided to avoid high yielding income trusts. This stumped me at the time. Bloomberg reported: “AIC plans to stick with its holding in Loblaw, Canada's biggest grocery chain, even after the stock dropped 30 percent in the past year....AIC also plans to keep its shares in Amvescap, the London- based owner of the Aim and Invesco mutual funds. The stock has lost more than 60 percent of its value in six years.”

His optimism served him well. I guess he wasn't enjoying himself too much though, because he stepped down as CEO of AIC shortly after. Here's Bloomberg's original file from Oct. 6.