Komfie Manalo, Opalesque Asia:
Canadian hedge fund manager Eric Sprottís flagship hedge fund lost more than 50% so far this year; and I appears to be headed towards its third consecutive year of losses on weak gold prices.
Compounding Sprottís woes are redemption requests from investors. that saw the once $3bn His hedge fund firm Sprott Inc., which had $3bn in 2008, now has about $350m in assets, according to The Journal. Sprott's mutual-fund, private-equity and wealth-management arms now collectively manage about $7bn, down from $10bn last fall.
The report adds that the poor performance of the hedge fund was brought by Sprottís strong belief that precious metals, particularly gold, would rebound and provide good returns for the firm in the long term.
However, gold prices fell by some 25% since last year and is set to register its first annual drop in value after posting 12 years of consistent gains. The yellow metal closed $1,257 a troy ounce on Wednesday. Another precious metal that Sprott favors, silver, shed 33% and settled Wednesday at $20.36 an ounce, says the paper.
Sprott Inc. announced that Eric Sprott, who founded the firm in 1981, would no longer be involved in investment decisions.
In another report, ......................
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