You raise an excellent point. We "eat at our own restaurant" in a very big way! The majority of my net worth is in Cambridge funds and the same is true for Steve and Brandon. In addition, since we have joined CI, a significant portion of our pay has been deferred and invested in the funds. These contributions vest over three years, so we are well aligned with unitholders to say the least.
It’s a great question to ask of any portfolio manager you are considering entrusting with your money or your clients' money -- are they significant investors in their own funds?
We like companies where management owns a significant amount of shares personally and were not given the equity in options, but used their hard-earned money to buy the stake. Examples include Couche-Tard, Tourmaline, Sylogist, Huntingdon, and we could go on. We ask it of the companies we invest in and thus expect clients to ask it of us. We run the funds as if it's our own money because it is our own money.
CI funds are allowed to own shares of CI Financial but the transactions are subject to review by the funds’ Independent Review Committee because of the potential for conflicts of interest. We have not owned CIX in the funds.