Fri, Jan 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Eric Sprott’s flagship hedge fund drops 50% on weak gold prices

Thursday, December 12, 2013

Komfie Manalo, Opalesque Asia:

Canadian hedge fund manager Eric Sprott’s 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 Sprott’s 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 Sprott’s 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, ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  4. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would

  5. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalauMor Management in New York