Friday, 27 May 2016
Last updated 47 min ago
Jul 14 2010 | 12:19pm ET
Succession is increasingly on the minds of aging hedge fund titans, and Canada’s Eric Sprott is no exception. Sprott will step down as CEO of his eponymous firm later this summer and he is on the lookout for people to eventually take his place as manager of the firm’s hedge funds.
Sprott will hand over the reins as CEO of Sprott Inc. to Peter Grosskopf on Sept. 7. Grosskopf, currently president of Cormark Securities, the former Sprott Securities, will also serve as president and CEO of Sprott Resource Lending Corp.
Sprott himself will become chairman of the firm, taking over from Jack Lee. He’ll continue to serve as chief investment officer of Sprott Asset Management. Lee will become Sprott Inc.’s lead director, and senior portfolio manager Peter Hodson will leave the board.
The firm’s namesake also set a five-year horizon for finding new hands to take over his hedge fund management responsibilities.
“The hedge funds are a little more complex because it takes a different frame of mind to manage a hedge fund,” the 65-year-old told the Globe and Mail. “We are experimenting with various partners here both in research and the portfolio management area. But ultimately we may have to go out and find someone.”
Until then, Sprott is pushing full-speed ahead. His firm this week filed a preliminary prospectus to launch a closed-end silver bullion fund on the Toronto Stock Exchange and NYSE Arca. The Sprott Physical Silver Trust will buy “unencumbered, fully-allocated physical silver bullion” following its initial public offering.