Sprott All Cap Fund
Investment Team
Charles Oliver
Senior Portfolio ManagerCharles Oliver
Senior Portfolio Manager
Charles Oliver joined SAM in January 2008. He is co-manager of the Sprott Gold and Precious Minerals Fund, Sprott All Cap Fund, Sprott Opportunities Hedge Fund L.P. & Sprott Opportunities RSP Fund.
Prior to joining SAM, Charles was at AGF Management Limited, where he led the team that was awarded the Canadian Investment Awards Best Precious Metals Fund in 2004, 2006, 2007, and was a finalist for the best Canadian Small Cap fund in 2007. At the 2007 Canadian Lipper Fund awards, the AGF Precious Metals Fund was awarded the best 5-year return in the Precious Metals category, and the AGF Canadian Resources Fund was awarded the best 10-year return in the Natural Resources category.
Charles began his investment career with Midland Doherty in 1987 and later joined AGF's Fund Management department in 1999. In 2002 he was named co-manager of the AGF Precious Metals Fund, the AGF Global Resources Fund and the AGF Canadian Resources Fund. In 2004 he was named Manager of the AGF Canadian Small Cap Fund. In 2006 he became co-manager of the AGF Growth Equity Fund and co-advisor on the Markland Oilsands Sector Fund. Charles also helped manage institutional funds and funds domiciled in Japan, Ireland, and the UK.
Charles combines a big picture approach and a bottom up process. Using a portfolio approach he focuses on strong management teams with a sound strategy. He looks for growth at a reasonable price (GARP) and generally buys companies with the view of holding them over the long-term.
Charles obtained his Honours Bachelor of Science degree in Geology from the University of Western Ontario in 1987 and obtained his CFA designation in 1998.
Jamie Horvat
Senior Portfolio ManagerJamie Horvat
Senior Portfolio Manager
Jamie Horvat joined SAM in January 2008. Jamie is co-manager of the Sprott All Cap Fund, the Sprott Gold and Precious Minerals Fund, Sprott Opportunities Hedge Fund LP, and the Sprott Opportunities RSP Fund. Prior to joining SAM, Jamie was co-manager of the Canadian Small Cap, Global Resources, Canadian Resources and Precious Metals funds at AGF Management Limited. He was also the Associate Portfolio Manager of the AGF Canadian Growth Equity Fund, as well as an instrumental contributor to a number of structured products and institutional mandates while at AGF. He joined AGF in 2004 as a Canadian Equity Analyst with a special focus on Canadian and Global resources, as well as Canadian small cap companies. Prior to joining AGF he spent 5 years at another large Canadian mutual fund company as an Investment Analyst.
Jamie was acknowledged for his achievements while at AGF, as a finalist in the Canadian Small/Mid Cap Equity Fund category and as the winner of the Precious Metals Equity Fund category for the second consecutive year along with co-manager Charles Oliver at the 2007 Canadian Investment Awards. Furthermore, the AGF Canadian Resources Fund was awarded the best 10-year return in the Natural Resources category, while the AGF Precious Metals Fund was awarded the best 5-year return in the Precious Metals category at the 2007 Canadian Lipper Fund Awards.
Jamie holds a diploma in Mechanical Engineering Technology (honours) from Mohawk College, and an Honours B.Comm from McMaster University. He is a member of the International Research Association and is a Licensed International Financial Analyst. He is also a member of the Ontario Association of Certified Engineering Technicians & Technologists.
Fund Details
| Fund Status | Open |
| Distributions | Income and Capital Gains Distributed Annually (if any) Distributions are reinvested automatically |
| Fund Code |
SPR 013 - (A) |
| Inception Date | 9/18/2008 |
| Nature of Securities | Mutual Fund Trust Units |
| Type of Fund | Small-Mid-Large Cap Equity Fund |
| Valuations | Daily |
| Redemptions | Daily |
| Minimum Initial Investment | $1,000 CDN |
| Minimum Subsequent Investment | $100 CDN |
| Minimum Investment Term | 180 days (3% penalty) |
| Management Fee | 2.5% annual - (A) |
| Performance Fee | 10% of excess over S&P/TSX Composite Total Return Index |
| Eligible for Registered Plans | Yes |
| Investor Risk Tolerance | Medium to High |
Q4 Market Commentary
The Sprott All Cap Fund Series A (the "Fund") declined 6.3% during the fourth quarter while its benchmark S&P/TSX Composite Total Return Index gained 3.6%.
Throughout the year, the Fund maintained its defensive posture. Gold bullion, which at the end of the quarter represented approximately 28% of the Fund's long position, is a strategic position with a purpose of being defense against inflation and maintaining relative purchasing power. We have long expressed our concerns over the inflationary effects of money printing programs and accordingly increased the Fund's allocation to gold bullion by approximately 10% during the year. Gold bullion finished the year up 12.4% in CAD terms.
The Fund takes full advantage of its ability to short stocks and ended the year with short positions being just shy of its 20% limit. Stocks sold short are largely being within the financial, consumer discretionary and industrial sectors. Until we see hard evidence of a further round of European quantitative easing, we intend to keep our shorts at the maximum level. Also, the forthcoming US federal elections should bring many promises about spending which should have a positive effect on markets in the back half of the year.
While we are satisfied with the Fund's current strategic asset allocation, we are spending time searching for what we describe as the "new banks". These are stocks within a sector which exhibit similar fundamental ratios as Canadian financial services stocks in term of price stability, solid dividends and deliver decent ROE - yet with minimal financial leverage. We anticipate that companies with above-average yields may well be the darlings of 2012. We believe that employing a barbell strategy of combining the stability of dividends with purchasing power protection of precious metals will help reduce the negative effects global deleveraging.