Sextant’s Exotic Metals Hedge Fund Continues Winning Streak

Apr 9 2007 | 2:32pm ET

Sextant Capital’s Sextant Strategic Opportunities Hedge Fund is continuing its strong performance, with the portfolio manager crediting the fund’s returns to plays in the molybdenum market.

The exotic metals fund, which returned 117% last year, was up18.2% in March bringing its year-to-date returns to 20%. The fund managed some $10 million in assets as of the end of February.

Sextant founder Otto Spork, in his monthly investor letter, writes: “Going forward, we continue to see a positive environment for the Fund. We believe we have positioned ourselves in the sweet spot of this bull market for exotic metals.”

Spork adds that the firm continues to see a strong demand from the Chinese for metals, specifically molybdenum.

“Given the miniscule nature of the moly market and equities, the expected spike in demand is just starting to move both the metals and the equities to new highs, as it takes 4-5 years to bring a moly mine on stream, we expect inventory tightness to continue,” writes Spork. He adds that China has also recognized this trend, and has recently announced a quota system for molybdenum experts.

“Until now, many were skeptical about investing in moly, as they thought that the price of moly would drop from $25 to $12 by early 2007. We at Sextant never subscribed to this thesis.”

The fund charges fees of 2/20 with a minimum investment requirement of C$150,000.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note