Eric Sprott Sells the Balance of His PSLV Shares (For His For-Profit Funds)

Eric Sprott’s latest 13d filing in $PSLV shows that the funds he manages (for investors, for profit, that is) have sold every last share of $PSLV that they own, taking full advantage of the roughly 20% premium to Net Asset Value that the closed end fund carries.  Sprott has now begun selling the $PSLV shares held by his charitable Sprott Foundation.  Although Mr. Sprott’s charitable foundation may not come with the same fiduciary duty that his hedge funds do, I wouldn’t expect him to leave free money on the table – I see no reason why Sprott wouldn’t continue to liquidate these remaining Foundation shares as well – reinvesting the proceeds into silver instruments that don’t trade at a 20% premium.

In total, Sprott’s 13d filings over the last 5 months account for the sale of 9,834,400* shares of $PSLV by funds managed by Eric Sprott (excluding the Sprott Foundation shares below), at an average price of $19.36 and an approximate average premium to NAV of 20.33%.   By selling the shares at a hefty premium and reinvesting the proceeds into other silver instruments, Sprott “arbitraged” $38.8 MM in profit.

 

Shares Sold by Entities Managed Either by Sprott Asset Management L.P. or Eric S. Sprott

 

Date of
Transaction
Number of Units
Purchased/(Sold)
Price per Unit
9-19-11
(374,012)
$18.4913

 

Shares Sold by the Sprott Foundation

 

Date of
Transaction
Number of Units
Purchased/(Sold)
Price per Unit
9-23-11
(702,000)
$14.8597
9-26-11
(216,500)
$13.8409
9-27-11
(81,500)
$15.4254
9-27-11
(172,800)
$15.1461

 

That’s a total of 1,546,812 shares sold in this latest reporting period, and leaves 3,809,315 shares held by the Sprott Foundation.

background reading:

Sep 19th: Sprott sells 1.754MM PSLV

Sep 12th: Sprott sells 1.827MM PSLV

Aug 26th: Sprott sells 1.6MM PSLV

Aug 11th: Sprott sells 565k PSLV

Aug 2nd: Sprott sells 700k PSLV

July 23rd: Sprott sells 1MM+ PSLV

July 14th: Sprott sells 700k+ PSLV

April 28th: Sprott sells 1.6MM PSLV

March 12th: Sprott files to sell his PSLV shares

March 8th: “Misinterpreting PSLV’s Premium to NAV

July 18th: “Ask Eric Sprott Why He Won’t Buy More Silver for PSLV

-KD

disclosure: no positions in $PSLV or $SLV

* as I noted in one of the earlier posts, there are 154,900 shares “missing” and unaccounted for.

 

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