Gold, Silver Tarnish Sprott's Fourth Quarter

Apr 2 2012 | 12:45pm ET

A tough market for precious metals all but wiped out hedge fund Sprott Inc.'s profit in the fourth quarter.

The Toronto-based money manager said its net profit fell by 96% from the same period of 2010, from C$108.6 million to just C$4.6 million. Revenue fell by almost 85% to C$38.1 million.

Analysts had estimated Sprott would earn C$0.06 per share; it actually earned C$0.03.

"For sometime now, we have been vocal on our views on economic weakness and the dangers inherent in the financial system and as a result our portfolios were positioned defensively throughout 2011," CEO Peter Grosskopf said.

"However, beginning in August, with the broad market sell-off, our performance suffered due to the declines in gold, silver and energy equities, which accelerated in the year end."

Many of Sprott's funds finished down in 2011, cutting performance fee income for the quarter to just C$2.5 million, a fraction of the C$199.1 million it earned the previous fourth quarter.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of