Three raging bulls as oil barrels higher

Eric Sprott so believes in ‘peak oil’ theory that he’s sinking some IPO proceeds into his energy fund

Energy stock funds have been on a tear as the price of oil keeps soaring, and at least one fund manager is sinking more of his own cash into his portfolio because of his belief in the “peak oil” story.

Eric Sprott, portfolio manager and controlling shareholder of Sprott Asset Management Inc., invested some of the proceeds from the firm’s recent initial public offering into his Sprott Energy Fund last Friday.

“I bought units in that fund, and not an insignificant amount,” said Mr. Sprott, who estimates he now holds at least 10 per cent of the energy fund he manages.

“We have been believers for a number of years … that we are in what we call the peak oil scenario, where the prices will rise essentially forever because the world needs more oil than it can possibly produce and, in fact, production will go lower,” Mr. Sprott said in an interview yesterday.

Globe and Mail