The Fund identifies short-term opportunities primarily in Canadian companies - those overlooked or under-appreciated by the general financial community due to size, perceived riskiness, complexity or timing. The Fund endeavours to preserve capital through "senior liens on collateral assets with visible potential cash flows and/or liquidation or break-up values". Also, each potential investment must also have an "identifiable catalyst" - and event that allows the borrower to retire the loan within about 2 years.
Compare Sprott Private Credit Trust returns to the TSX or other hedge fund returns over the last few years. Notice the monthly ups (+4.4%) and downs (-6.1%) of the TSX relative to the steady positive monthly returns of the Trust (no negatives!):
|Steady monthly return for the TRUST (Sprott Private Credit Trust).|
The monthly and annual return of Sprott Private Credit Fund LP (the “LP”), which shared a similar investment objective and strategy as the Fund are below - again steady returns each month.
|Volatile public market and hedge fund returns.|
The Sprott Private Credit Trust is open to new investments on a limited basis. Check out Sprott.com for details, and due to changes in the 2013 federal budget, get tax advice on any new investments.