At Chuong Investment Management we are dedicated to finding "genetically gifted" companies that not only outperform the market and their peers, but outperform them easily. These businesses have low capital and debt requirements and healthy profit margins that allow them to continue this advantage indefinately.

Year	Chuong	S&P500	+/-
1998	+68.0%	+26.5%	+41.5%
1999	-4.9%	+20.2%	-25.2%
2000	+18.7%	-10.7%	+29.4%
2001	+21.0%	-13.0%	+34.0%
2002	-1.8%	-23.3%	+21.5%
2003	+33.0%	+26.9%	+6.1%
2004	+26.2%	+8.9%	+17.3%
2005	-3.6%	+3.0%	-6.6%
2006	+8.6%	+13.6%	-5.0%
2007	+22.4%	+3.6%	+18.8%
Overall	+385%	+52%

These results translate into an overall gain of 385% for Chuong since 1998 compared to an overall 52% gain for the S&P500 index over the same period. A $10,000 investment in the partnership at the beginning of this period would be worth almost $50,000 at the end of 2007 while the same investment in the S&P500 stock index would be valued at a little over $15,000.

Hi, my name is Jim Chuong. I am founder of the Chuong Partnership, founder of the Toronto Investment Club and a Berkshire Hathaway shareholder. I have been interviewed by the CBC¹, Report On Business Television (ROBTV): Michael Vaughan Live, the Globe and Mail², 2000 MoneySense magazine³, The Toronto Star⁴, 2005 MoneySense magazine5, and 2006 MoneySense magazine. (The respective articles can be found at the bottom of the page).

I manage the portfolios of a limited number of individuals in my investment partnership. This partnership is based on the Buffett Partnerships of 1950s and its structure is similar to the original Buffett Partnership.

I have beaten the S&P500 stock index since 1998 despite the Internet meltdown, the U.S.-Iraq war, Sept. 11th, and the sub-prime real estate meltdown.

The following are the requirements for being involved in the partnership.

All prospective partners must be Canadian residents.

The capital contribution required by any prospective partner is as follows:

$100,000 U.S.D. minimum for non-accredited investors^*
$250,000 U.S.D. minimum for accredited investors^**

Feature: I have over $250,000 U.S. of my own money in the partnership.
Benefit to you: Unlike virtually all other types of managed funds, I will have an acute vested interest in the partnership. A fund manager typically has no capital commitment in the fund they manage and draws a salary regardless of performance. Since I have my own personal money involved I have a strong interest to produce the highest returns possible for everybody.

In short, my personal, professional and financial interests are directly aligned with those of my partners.

Feature: A 6% threshold
Benefit to you: This means that if the annual return of the partnership does not exceed 6%, there shall be no fee charged to the partners. A 6% threshold was chosen to represent a typical return from a risk-free investment such as a GIC (guaranteed investment certificate).

If I do not beat a risk-free rate of return, I do not deserve to be compensated.

Feature: A fee is charged only if the return clears the threshold
Benefit to you: If the partnership has a return that is greater than 6%, then the profits are split between the partners and myself in the ratio of 3:1.

For example, if the partnership has a 14% return, I only receive a fee on the amount above the threshold (14% - 6%), which is 8%. My fee is 25% of this amount or 2% (25% x 8%). The remaining 12% is kept by the partner.

Thus on a $100,000 investment with a 6% threshold, if I produce a 14% return, my fee is $2,000 and the partner has a year-end balance of $112,000.

In short, the first 6% is "free" and the remainder is split 3:1 in favour of the partners.

This is markedly different from a mutual fund. which will charge you a fee irrespective of performance. Even in the event of negative performance they will subtract a hefty fee. In Canada, the average mutual fund charges a 2.5% management expense.

Keep in mind that over a 35 year investment horizon (e.g. an individual who begins investing at the age of 30 and retires at 65), a 2% fee results in the loss of HALF of your investment balance. That is, if one is supposed to take home $1,000,000 at the age of 65, they will, after an annual 2%, be taking home $500,000.

Feature: January 1^st key date
Benefit to you: Although new candidates may join the partnership at any time existing partners are only allowed to withdraw from their account on the 1^st day of January in the following year. A written notice of withdrawal should be provided no later than one month before the end of the year.

Portfolio reporting, the letter to partners, tax forms, and financial audits will also be anchored on this day. This accomplishes two things:

First, this discourages individuals who have a short-term or trading mentality. I am not interested in attracting these individuals to the partnership.

Second, in addition to attracting individuals with a long-term horizon, this rule discourages investors who may have issues with the minimum capital requirements of the partnership. I don't not want to cause discomfort to those investors who may need to have these amounts liquid since such concerns will only result in causing stress to the prospective investor, myself, and my partners.

Call 416-254-0159 and join me as my partner in my value-based partnership today and tomorrow you will be on your way to earning the results you want and the profits you deserve.

Best regards,
Jim Chuong
Chuong Investment Partnership

¹The Money Show (1999)

²August 2002 Globe and Mail Net Worth section entitled, "Computer buff follows value faith" ( page 1 page 2 )

³December/January 2000 edition entitled, "Super Stock Bargains" ( page 1 page 2 page 3 page 4 page 5 page 6 page 7 page 8 page 9 page 10 page 11 )

⁴March 2005 Money 101 article entitled, "Self-taught investor triples his money." ( page 1 )

⁵October 2005 edition entitled, "Canada's Best Small Investors" ( page 1 page 2 page 3 page 4 page 5 page 6 page 7 page 8 page 9 page 10 page 11 )

⁶October 2006 edition entitled, "Fantastic Four"

^*Only 35 non-accredited investors will be accepted into the partnership. Non-accredited investors are defined as individuals who have a gross salary less than $200,000 per year and less than $1,000,000 in liquid cash assets.

^** Accredited investors are defined as individuals who have a gross salary of $200,000 per year or $1,000,000 in liquid cash assets (not including real estate).