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The Resolute Growth Fund was started by Canadian Money Manager, Tom Stanley in 1994. Tom's strategy for buying overlooked and undervalued small capitalization stocks proved highly successful. Over the 12 years of the fund, returns averaged a staggering 27.7%, with a 100% return in 2005. Despite consistantly stellar performance, Tom decided to wrap up the fun in 2006 citing escalating red tape and regulatory costs.

"Our decision to close is final," Mr. Stanley said in a Jan. 24 letter to unitholders of the $238-million Resolute Growth Fund.

"We have been facing ever increasing regulatory expenses, detrimental disclosure requirements, rising liability risks and increasing red tape. In summary, these new rules are not compatible with what we have been doing and would like to continue to do for you, our unitholders," the letter notes. The 12-year-old Toronto fund will return proceeds to unitholders on June 2.

Mr. Stanley shuns the spotlight and keeps his stock picks to himself. That unconventional style contradicted the aims of the Ontario Securities Commission and has led to the end of the fund.

As of June 1 2005, NI 81-106, the new continuous disclosure rule, went in to effect. Fund firms have a long list of new obligations, including fund-specific financial statements and proxy-voting disclosure. All that data must be processed and made available to unitholders.

Resolute Growth fought for an exemption to the new disclosure requirements that force the fund to reveal its 25 largest holdings every quarter. Typically, the fund holds less than 20 equities and Mr. Stanley believes privacy is key to his success. Unitholders backed Mr. Stanley too, voting overwhelmingly in favour of asking for an exemption at a June, 2005, meeting.

"We failed to persuade the regulators," Mr. Stanley said in his letter, noting that large fund firms and their lawyers favour increased regulation of the fund industry. "It is my attitude that is inconsistent with the current industry environment and that there is no longer a place for a fund like ours."