At yesterday's AGM Karl admitted that ARQ had been the worst investment he had ever made. He immediately qualified that by saying that it was the worst investment he had ever made in a fund that he was responsible for, implying that he had made worse investments on a personal level. He further said that, as ARQ was beginning to tank, he was unable to scale out of it because of its illiquidity. He was stuck with it as it crashed. The lesson he takes away from this, he assures us, is that adequate liquidity is now added to the CDM criteria for all future stock selections. His decision to go onto the ARQ board was motivated by his desire to push for the recovery of some value from the holding, he said, and there are measures currently underway in that regard. The two lessons that he takes away from the worst year that CDM has had are high liquidity and greater diversification, he says.
CDM Price at posting:
75.5¢ Sentiment: Hold Disclosure: Held
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