Sprott Asset Management is a Toronto-based alternative asset manager founded by billionaire Eric Sprott, a widely-knowninvestor usually bullish on the resource sector, particularly precious metals. Although Mr. Sprott is no longer involved in the day-to-day portfolio management operations at Sprott Asset Management, his investment firm continues to believe in the long-term prospects of precious metals to some extent. Just recently, the Toronto-based firm submitted its quarterly 13F for the first quarter, so this article will discuss several noteworthy non-resource related moves implemented by the firm during the first three months of this year. Sprott’s equity portfolio was valued at $1.27 billion at the end of March, as compared to $2.65 billion registered a quarter earlier. However, this does not necessarily imply that the fund had a terrible performance in the first three months of 2016, as it implemented a thorough rebalancing process during the period.
We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).
#5. CGI Group Inc. (NYSE:GIB)
– Number of shares held by Sprott as of March 31: 811,550
– Value of Sprott’s holding as of March 31: $38.78 Million
CGI Group Inc. (NYSE:GIB) represents the fifth-largest equity holing in Sprott Asset Management’s equity portfolio as of the end of March, consisting of 811,550 shares valued at $38.78 million. The Toronto-based alternative asset manager held its stake in CGI Group unchanged during the first three months of this year. The Montreal-based information technology (IT) and business process services (BPS) firm has seen its shares advance by 21% since the beginning of 2016. The company has been deploying more capital towards developing cybersecurity services, which may drive both bottom- and top-line growth in the upcoming years considering the growth in cybersecurity threats. CGI Group’s revenue for fiscal 2015 that ended September 2015 was $10.29 billion, which decreased $212.6 million year-on-year. While most U.S. multinational companies have been impacted by the stronger green buck in recent years, the Montreal-based firm’s revenue was positively impacted by foreign currency fluctuations, with the positive impact reaching $211.7 million. CGI Group’s stock trades only 13.0-times expected earnings, below the forward PE multiple of 16.3 for the Information Technology sector. Cliff Asness’ AQR Capital Management held 940,643 shares of CGI Group Inc. (NYSE:GIB) in its equity portfolio at the end of December.