Sprott Inc. (SII): A Bull Case Theory

We came across a bullish thesis on Sprott Inc. on FluentInQuality’s Substack. In this article, we will summarize the bulls’ thesis on SII. Sprott Inc.'s share was trading at $71.90 as of September 18th. SII’s trailing and forward P/E were 37.06 and 26.95, respectively according to Yahoo Finance.

Sprott Inc. is a global asset manager specializing in precious metals and real assets, serving institutions, wealth managers, and investors seeking stability amid market uncertainty. The company generates revenue through a diversified business model, including management fees tied to assets under management (AUM), exchange-listed products such as gold and uranium trusts and ETFs, private strategies investing directly in mining, energy transition, and infrastructure projects, and advisory and brokerage services that connect investors with resource-sector opportunities.

This model provides recurring revenue, strong scalability as assets grow without proportional increases in costs, and diversification across metals, funds, and client types, creating a resilient platform with high-margin potential. What sets Sprott apart is its pure-play focus on natural resources, giving it an edge over generalist asset managers. Its offerings in precious metals provide a natural hedge during market downturns, enhancing its appeal to risk-conscious investors.

The company’s decades-long expertise and strong reputation in commodities investing further reinforce client confidence, while performance-based fees align Sprott’s incentives with those of its investors. Beyond financial performance, Sprott plays a broader role in preserving wealth during inflationary periods, channeling capital into critical natural resources, and supporting the global transition to clean energy through investments in uranium and battery metals.

Sprott’s combination of recurring, scalable revenue, specialized focus, and resilience in volatile markets positions it as more than a conventional asset manager. It functions as a gateway to commodities, a hedge against economic uncertainty, and a partner for long-term wealth preservation, offering investors a unique opportunity to gain both financial returns and exposure to essential global resources.

Previously we covered a bullish thesis on Brookfield Asset Management Ltd. (BAM) by Soren Peterson in February 2025, which highlighted the company’s AI-driven infrastructure positioning, diversified capital deployment, and long-term upside from carried interest. The company's stock price has depreciated approximately by 1.35% since our coverage. The thesis still stands as BAM remains well-positioned for resilient growth. FluentInQuality shares a similar perspective but emphasizes Sprott Inc.’s focus on precious metals, scalable AUM-driven revenue, and role as a hedge against volatility.

Sprott Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held SII at the end of the second quarter which was 24 in the previous quarter. While we acknowledge the potential of SII as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.