ABC Funds’ newest feature article, “Our ABC Response to Client Concerns” reveals Irwin A. Michael’s dedication to his funds and his profession. Basically he was getting questions from clients, asking him if perhaps he was not putting more effort into his newest fund, NAD-V, and less attention to his older funds. One client asked him,
Recently, however, with the launch of the NAD-V, I’m beginning to get the feeling that you are focusing on the NAD-V and as a result the other three funds that I own aren’t going to have the same results as one has come to expect. I hope I’m wrong but would like to know from you – are you getting distracted from managing the performance of the other three funds so you can ensure the NAD-V does well? Just wondering…
Here is part of Mr. Michael’s reply,
My initial response to this question was one of surprise. Quite frankly, it never occurred to me that I might slight one fund over the other three ABC Funds. I regard myself as a professional, but more importantly, I have too much to lose – my reputation, my own invested money as the largest single individual client of ABC Funds, my Chartered Financial Analyst designation (CFA), an industry code of ethics and the fact that I have dedicated over 32 years to my profession and almost 18 years building the ABC Funds.
Actually, not only is Michael Irwin the largest client of ABC Funds, but this page says he has invested “his own funds (taxable, holding company and full RRSP) as well as his wife’s, children’s and his late father’s estate in the ABC Funds.” Further down in the article he says exactly how much of his and his family’s portfolio is investedin ABC Funds:
As a final point, given that my family and I are the largest individual unit holders of ABC Funds with over 80% of our invested capital in the three open-ended funds it is in my best interest to see that they all succeed. The fact is that these four funds are a large part of my deep passion for my work and I would never compromise my principles. I remain motivated and excited about ABC Funds and the prospects for “deep-value investing”. This will not change. [emphasis mine]
I wonder how many fund managers out there (and their families) have such a huge stake in their funds? (and are as passionate as Mr. Michael makes himself out to be)?