Palm Valley Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of 0.04% was recorded by the fund for the fourth quarter of 2021, while its benchmarks, the S&P SmallCap 600 Index, by comparison, returned 5.59% and 3.72% return for the Morningstar Small Cap Index over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Palm Valley Capital Management, in its Q4 2021 investor letter, mentioned Sprott Physical Silver Trust (NYSE: PSLV) and discussed its stance on the firm. Sprott Physical Silver Trust is a Toronto, Canada-based closed-end trust company with a $3.2 billion market capitalization. The stock closed at $7.72 per share on January 10, 2022.
Here is what Palm Valley Capital Management has to say about Sprott Physical Silver Trust in its Q4 2021 investor letter:
“The three positions contributing most to the Fund’s quarterly return (includes) Sprott Physical Silver Trust (ticker: PSLV). Although precious metals experienced modest gains in the fourth quarter, it was a trying year for gold and silver investors. The U.S. experienced its highest inflation in 40 years, the largest federal budget deficits ever, deeply negative real interest rates, and ongoing Quantitative Easing by the Fed. Yet, precious metals declined. Some gold and silver investors are reacting to expectations of tighter monetary policy, as the Federal Reserve has begun its taper of asset purchases and has indicated a plan to begin raising interest rates in 2022. Of course, monetary conditions will remain looser than almost any prior time in U.S. history. In a not-so-surprising contradiction, the stock market has had a muted reaction to the Fed’s tapering announcements, with large caps continuing to trade near all-time highs.”
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Based on our calculations, Sprott Physical Silver Trust (NYSE: PSLV) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PSLV was in 5 hedge fund portfolios at the end of the third quarter of 2021, compared to 3 funds in the previous quarter.
In December 2021, we also shared another hedge fund’s views on PSLV in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.