Prospector Capital Appreciation Fund
Data updated: 2024-11-25
C000051589 — Prospector Capital Appreciation Fund. United States Mid Cap Value Equity · 1.26% expense ratio. Holdings, fees, performance and SEC filings.
C000051589 Fund Overview
Prospector Capital Appreciation Fund is a US mutual fund managed by Prospector Funds, Inc., categorised as United States Mid Cap Value Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Prospector Funds, Inc.
- Category: United States Mid Cap Value Equity
- 1-year return: 24.8%
- SEC CIK: 0001402472
- SEC series ID: S000018596
- Share class ID: C000051589
C000051589 Investment Objective and Strategy
Prospector Capital Appreciation Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Prospector Funds, Inc..
Investment objective
The investment objective of the Capital Appreciation Fund (the Capital Appreciation Fund or the Fund) is capital appreciation.
Principal investment strategy
Under normal market conditions, the Capital Appreciation Fund invests primarily in a variety of equity and equity-related securities, including common stocks, convertible preferred and convertible debt securities. The Capital Appreciation Fund attempts to buy investments priced to generate long-term total returns significantly above those of general stock indices and U.S. treasuries. Using a value orientation, the Investment Manager invests in positions in the United States and other developed markets. The Investment Managers investment strategy consists of bottom-up fundamental value analysis with an emphasis on balance sheet strength. In evaluating potential investments, the Investment Manager also considers qualitative factors, including quality of management, quality of product or service, overall franchise or brand value, composition of the board of directors, and the uniqueness of the business model.
The Investment Manager looks for the presence of catalysts to improve internal performance, such as a change in management, a new management incentive program closely linked to the price of the stock, the sale of an underperforming asset or business unit, or a positive change in industry fundamentals. The Investment Manager believes that fundamental analysis can identify undervalued investment opportunities. Substantial gains are possible whenever a securitys price does not accurately reflect future cash flow and earnings power or where current or future asset values have not been fully recognized. The Investment Manager believes that risk can be managed through a careful selection process that focuses on the relationship between the actual market price of a security and the intrinsic value of which the security represents an interest.
The investment program of the Capital Appreciation Fund focuses on value. The Investment Manager believes that value will typically be manifest in one of four ways: (1) inexpensive underlying assets as measured by analytical techniques such as private market value, replacement cost, or mark to market; (2) attractive corporate financial characteristics such as free cash flow yield, dividend yield and price/earnings (P/E) ratio; (3) depressed stock price (often known as contrarian investing); and (4) companies with growth characteristics selling substantially less expensive compared to their own history or other similar growers. Suitable securities often look attractive on more than one measure of value. Once a company is identified as a potential investment, the Investment Manager examines the capital structure to determine whether any attractive convertible securities are outstanding.
In general, convertible securities: (1) have higher yields than common stocks but lower yields than comparable non-convertible securities; (2) may be subject to less fluctuation in value than the underlying common stock because of their income and redemption features; and (3) provide potential for capital appreciation if the market price of the underlying common stock increases (and in those cases may be thought of as equity substitutes). Because of the conversion feature, the price of a convertible security will normally vary in some proportion to changes in the price of the underlying common stock. The underlying equity need not be a value situation if the Investment Manager believes that the downside is well protected by the bond-like characteristics of the particular convertible security.
The distressed securities in which the Capital Appreciation Fund may invest include all types of debt obligations, including corporate bonds, debentures, notes, municipal bonds and, to the extent permitted by applicable laws and regulations, securities issued by foreign issuers, including foreign governments. The Fund may invest in restricted securities including, but not limited to, private placements of equity and/or debt securities of private companies. In particular, the Fund may invest in unregistered securities which may be sold under Rule 144A of the Securities Act of 1933, as amended (144A securities). In pursuit of its value-oriented strategy, the Capital Appreciation Fund may invest without regard to market capitalization. The Capital Appreciation Fund may also engage in currency transactions as well as transactions involving the purchase and sale of options on securities and other types of derivatives.
C000051589 Holdings
Top 10 holdings of Prospector Capital Appreciation Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| First American Treasury Obligations Fund | 4.93% |
| Eaton Corp PLC | 3.53% |
| Halozyme Therapeutics Inc | 2.75% |
| Abbott Laboratories | 2.72% |
| Brown & Brown Inc | 2.68% |
| Curtiss-Wright Corp | 2.65% |
| Fairfax Financial Holdings Ltd | 2.53% |
| Akamai Technologies Inc | 2.46% |
| Dropbox Inc | 2.45% |
| Arthur J Gallagher & Co | 2.38% |
C000051589 Portfolio Allocation
Asset-class allocation of Prospector Capital Appreciation Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 78.6% |
| Fixed Income | 16.7% |
| Cash & Equivalents | 4.9% |
C000051589 Performance
Total returns for C000051589 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 24.8% |
| 3 years (annualised) | 10.6% |
C000051589 Risk Information
Risk metrics for C000051589, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 8.5%
C000051589 Costs and Fees
C000051589 costs about $126 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.26%
- Gross expense ratio: 1.77%
- Portfolio turnover: 41%
- Brokerage commissions: 2.54 bps of average net assets (SEC N-CEN)
C000051589 Cashflows
Over the 12 months to 2024-09, Prospector Capital Appreciation Fund had net inflows of $8.88M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-09 | $1.72M |
| 2024-08 | −$173.61K |
| 2024-07 | −$938 |
| 2024-06 | −$173.61K |
| 2024-05 | $458.41K |
| 2024-04 | $349.23K |
C000051589 Debt Constituents
Largest debt holdings of Prospector Capital Appreciation Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| Halozyme Therapeutics Inc | 2.75% |
| Akamai Technologies Inc | 2.46% |
| Dropbox Inc | 2.45% |
| Vishay Intertechnology Inc | 1.87% |
| BioMarin Pharmaceutical Inc | 1.80% |
| Verint Systems Inc | 1.75% |
| Array Technologies Inc | 1.30% |
| Middleby Corp/The | 1.01% |
| NuVasive Inc | 1.00% |
| Chart Industries Inc | 0.34% |
C000051589 Prospectus and SEC Filings
Official Prospector Capital Appreciation Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2024-04-26
- Prospectus (485BPOS) — filed 2023-04-28
- Prospectus (485BPOS) — filed 2022-04-29
- Portfolio holdings (N-PORT) — filed 2024-11-25
- Portfolio holdings (N-PORT) — filed 2024-11-25
- Portfolio holdings (N-PORT) — filed 2024-08-27
- Annual census (N-CEN) — filed 2024-10-30
- Annual census (N-CEN) — filed 2024-03-13
Related Funds
Other United States Mid Cap Value Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.