The real (and shocking) story of Kevin O’Leary’s business career | National Observer

Posted: January 27, 2016 in Canadian Politics, Economy, Media

Is Kevin O’Leary a good or bad businessman?

Buried in the back pages of the financial press last October was a story about the sale of his mutual fund company, O’Leary Funds, to Canoe Financial, an investment firm run by former Dragons’ Den cast member and entrepreneur Brett Wilson.

O’Leary had launched his funds with great fanfare back in 2008, introducing them to viewers on his Business News Network (BNN) show, SqueezePlay. Before the cameras, wearing a natty navy-blue suit and matching azure tie, O’Leary resembled a proud father with a new infant as he explained to co-host Amanda Lang how his fund was designed to produce yield on a monthly basis.

“You got to pay Daddy,” he declared, “because my wife costs a fortune, my kids cost a fortune. I need dough and I need dough every month. You got to pay Daddy number one.”

In those days, O’Leary’s star was ascending. He was one of the so-called “Dragons” on Dragons’ Den, which was becoming a bonafide Canadian hit. The following year he and Lang moved their daily business show over to the CBC, renamed The Lang & O’Leary Exchange.

O’Leary’s popularity and persona as a business guru soon drove investors to his mutual funds, with O’Leary Funds roaring to as much as $1.5-billion in assets (and probably more). O’Leary boasted of being an investing whiz, with access to the movers and shakers in the business and political worlds — those ties giving him unique insider knowledge.

The reality was quite different. O’Leary was not even licensed to manage or invest other people’s money. Instead, he hired Connor O’Brien, a former Wall Street investment banker, to run O’Leary Funds. Moreover, by 2012, the funds were in trouble, falling to $1-billion in assets by the end of that year.

This past fall, when he finally sold his company to Canoe, the funds were down to $800-million in assets. This was due to redemptions — investors pulling their money out because of the funds’ performance. “The majority of the funds performed poorly for an extended period of time and the majority of (Bay Street) brokers refused to sell any new funds,” says Mark McQueen, CEO of Wellington Financial LP, a $900-million Bay Street finance firm and one of O’Leary’s long-time critics. “It’s not personal. The industry lives and dies on performance.”

Yet the demise of the O’Leary Funds is, in fact, just the latest in a series of failures in Kevin O’Leary’s business career…

Read the rest at: The real (and shocking) story of Kevin O’Leary’s business career | National Observer

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s