Alex Shnaider was this year’s largest net worth decliner.
The Rich 100: Fortunes made, fortunes lost
Heather Li
Canadian Business Magazine
Nov 2009
It’s been a tumultuous couple of years for Ivanhoe Mines executive chairman Robert Friedland, but it’s safe to say he’s probably feeling pretty good these days. Last year, he had the biggest drop on the Rich 100, as his net worth tumbled by 52%. But this year, his personal wealth has increased by nearly 217%, to $1.59 billion, making him our biggest gainer in 2009 and vaulting him up 61 spots, from No. 93 to No. 32.
During the market crash in the fall of 2008, Ivanhoe stock, which makes up the bulk of Friedland’s fortune, fell to about $2 from $11. After steadily rising over the first half of this year, the shares were boosted to $13 in August, when the Mongolian government cancelled a 68% windfall profit tax on copper and gold, which was a huge obstacle for developing Ivanhoe’s Oyu Tolgoi project. Friedland is still behind his 2007 Rich 100 ranking of No. 29, when he had a net worth of $1.67 billion.
Other notable 2009 Rich List gainers include Dennis (Chip) Wilson, founder of yogawear company Lululemon Athletica, whose 55% increase in net worth, to $750 million, moved him up 17 spots to No. 78, and SmartCentres real-estate company owner Mitchell Goldhar, whose wealth increased by 30% from 2008. Over the summer, Lululemon’s same-store sales were better than expected. Meanwhile, SmartCentres has been in an acquisition phase this past year, and its value has increased by $175 million. Goldhar lands at No. 37, 13 places up from last year, with a net worth of $1.37 billion.
Though most of our Rich 100 members increased in worth, there were some notable drops. Alex Shnaider, co-founder of the international steel and real estate investment company Midland Group, was this year’s largest net worth decliner. A 50% drop in his net worth, to $2.13 billion from $4.25 billion, resulted in Shnaider falling to No. 20 from No. 6. Shnaider’s loss was due to the decline in Midland’s value, which decreased by $1.4 billion.
Michael Lee-Chin also took a big hit with the decline of his AIC Mutual Funds company and its sale to Manulife. His net worth decreased by 30%, to $1.7 billion, and he dropped 12 spots, to No. 28. Stewart Blusson and Charles Fipke, large stake-owners in the Ekati diamond mine, also experienced large drops. Their net worths declined by 21% and 19% respectively, mainly because the mine’s reserves are valued in U.S. dollars, and the Canadian dollar was so strong at the end of this year. Still, we’re sure Blusson and Fipke, who are side by side on this year’s list at No. 81 and 82, aren’t crying too much over the loss. Combined, they’re worth more than $1.37 billion.
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Alex Shnaider partnered with Donald Trump in the construction of the Trump International Hotel and Tower, which is currently under construction in Toronto. Donald Trump is a minority shareholder in the project. Shnaider has reportedly decided to keep the penthouse suite for himself, at an estimated value of $20 million. Source Wikipedia