Toronto, Canada, March 27, 2023 (GLOBE NEWSWIRE) — Chou Associates Management Inc. (the “Manager”) today announces that it has filed an application with the Ontario Securities Commission requesting an exemption from the requirement prohibiting an investment fund from selling a security to an affiliate of the manager of the investment fund. There can be no assurance that such relief will be granted.

On June 17th, 2022, the Chou Associates Fund (the “Fund”) exceeded the 15% illiquid security threshold due to a significant increase in the valuation for the illiquid asset provided by a third-party valuator coupled with a reduction in the net asset value of the Fund due to certain redemptions. The Fund has been using reasonable commercial efforts to reduce its investments in private companies but such investments remain in excess of the 15% limit on illiquid securities in the Fund. As at March 27, 2023, the Fund held illiquid securities comprising approximately 23% of the Fund’s net assets, all of which are securities of EXCO Resources Inc. (“EXCO”), a private U.S. oil and natural gas company.

The Fund is working to reduce its percentage of illiquid securities by pursuing the sale of a portion of the EXCO shares to affiliates of the Manager. Subject to regulatory approval, these affiliates will purchase the EXCO shares at the price of $21.08 per share, which is based on a valuation by Kroll LLC. as of December 31, 2022. The price per share is consistent with the valuation of the shares of EXCO for the purposes of calculating the net asset value of the Fund. If this transaction is completed, the illiquid security component of the Fund’s portfolio will be reduced to below the required 15% as soon as practicable upon receipt by the Manager of a decision document by the Ontario Securities Commission. The Fund does not foresee any difficulty in satisfying unitholder redemption requests.

About the Manager

The Manager is the portfolio manager to the Fund and the Chou RRSP Fund, Chou Europe Fund, Chou Asia Fund, and Chou Bond Fund (together, the “Funds”). The Manager provides management of the overall business of the Funds, including selection of the securities in each Fund’s portfolio, and promoting sales of the Funds’ units.

The Manager carries out all research, purchases, and sales of the Funds’ portfolio securities.

Additional information regarding the Manager and the Funds can be found at

For further information:

Francis Chou


Chou Associates Management Inc.

(416) 214-0675

[email protected]

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