A Comment -- General Comments From an Expert (A Commentary)

ROI High Income Placement Fund: Invests in loans and mortgages in the private space. High quality loans to high quality borrowers. Never had a negative day. Banks aren’t interested in the actual projects, but the borrowers are fine.

SG Capital Cedar Street Fund LP: The proposition is that you have an agile, nimble strategy in poorly analyzed companies. Will turn over positions each quarter depending on announcements. Fund made 9%. No complications for Canadians investing in this US fund. Exempt of US$ risk.

Blackheath Futures Fund LP: Makes money in the back of emotions in the market. Agriculture and metals, bonds and energy. It follows trends as they form.

Fiera Market Neutral Fund: (Top Pick June 11/10, Down 6.5%)

Picton Mahoney Income Opportunities fund: (Top Pick June 11/10, Up 9.20%) Great long/short strategy working in global bond markets.

Spartan Multi Strategy Fund: (Top Pick June 11/10, Up 3.0%)

Markets. Very strong start, particularly in the US but not bad for Canada either. People are feeling a little bit, about Europe. Data coming out of US is not rosy but not bad. Big winners last year were the telcos, pipelines and utilities, the utility stocks and their now trading at multiples of earnings, which are very much at the high-end of their historic range. However, interest rates are going to stay low for 1.5-2 years so you can't leave too early but he is looking for other opportunities. With the Cdn$ near par he is looking south of the border also.

Sectors. He likes the banks, agriculture and oil sands. Oilsands particularly are very deeply undervalued. People are concerned about the political machinations in the US, environmental concerns in Canada as to whether pipelines will get built to the West or South. He believes the oil will come out of the ground and get refined somewhere. Fertilizer stocks are suffering from an oversupply in the good crops last year. This is a cyclical commodity but it will come back and in the meantime this is an opportunity to get them at good prices. Banks have got good dividend yields and are trading at a low multiple of earnings and it is underestimated how well they're going to do in this low interest rate environment.

(A Top Pick Feb 8/11. Up 14.3%.) 4.25% Canada Real Return Bonds due 12/01/21. Inflation protected.

Europe. He is currently buying in Europe. Moving forward, he suspects there might be better opportunities in Europe. Perhaps towards the end of the year might be a bit better to pick up new positions.

Facebook IPO? Personally, he would not own this at this time. It is going to run very quickly. Historically these are trading stocks. If you want to trade, the duration will probably be 30 days.Facebook IPO? Personally, he would not own this at this time. It is going to run very quickly. Historically these are trading stocks. If you want to trade, the duration will probably be 30 days.

Interest rates. Expect things will gradually creep up because the economy is getting better and inflation expectations are fairly subdued at just around 2%. Flight to quality has been in the US market will gradually erode or just disappear. This will cause a natural rise in yields.

Shorting US 2 and 10 bonds after European crisis winds down? The risk is that yields continue to go down. For an individual to short the bond market is very difficult. To do that you might have to use an ETF, which can be really leveraged. Very risky and complicated for an individual.

Real Return Bond ETFs? Yield on real return bonds is almost 0. You should get a return of 2% over inflation. If you own them, he would sell. Returns have been fantastic. If nominal yields rise and inflation expectations stay the same, these will sell off in price substantially.

How risky are BBB rated bonds such as Calloway Real Estate (CWT.UN-T) or First Capital Realty (FCR-T)? Likes these 2 credits particularly. REIT sector has had a really good run and is still a comfortable sector to be in on the equity side. Dividends are well protected and interest payments are even better protected as they get paid out before the dividends.