AS OF 03/22/2019 NAV: $17.91 $20.05
$ CHANGE: -0.28 -0.41

Prospector Capital Appreciation Fund



FACT SHEET: Download December 31, 2018


The investment objective of the Capital Appreciation Fund is capital appreciation.


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 will invest in positions in the U.S. and other developed markets. The Investment Manager's investment strategy consists of bottom-up fundamental value analysis with an emphasis on balance sheet strength. Qualitative factors will also be considered, 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 a catalyst 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.

Total Returns as of 12/31/2018* 1 month
3 months
1 yr
3 yr
5 yr
10 yr
Since Inception
Prospector Capital Appreciation Fund -6.72% -9.97% -3.07% -3.07% 7.38% 4.69% 8.85% 4.87%
S&P 500 Index -9.03% -13.52% -4.38% -4.38% 9.26% 8.49% 13.12% 6.73%

Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value will fluctuate, and when sold, may be worth more or less than their original cost. Performance current to the most recent month-end may be lower or higher than the performance quoted and can be obtained by calling 877-734-7862. The funds impose a 2% redemption fee on shares held 60 days or less. Performance data does not reflect fee and if it had returns would be reduced.

* Returns greater than 1 year are annualized.

The Prospector Capital Appreciation Fund gross expense ratio is 2.03% and the net expense ratio is 1.31%. The Investment Advisor has contractually agreed to reimburse certain expenses of the Funds through September 30, 2019.

Top 10 Holdings as of 12/31/18
RenaissanceRe Holdings 3.5%
Brown & Brown 3.4%
Forestar Group, 3.750%, 03/01/2020 3.2%
Abbott Laboratories 3.2%
Verint Systems, 1.500%, 06/01/2021 3.1%
Coca-Cola 2.7%
Berkshire Hathaway, Class B 2.6%
Chart Industries, 1.000%, 11/15/2024 2.5%
Merck & Co. 2.5%
Liberty Media, 2.125%, 03/31/2048 2.4%

Fund holdings and sector allocations are subject to change and are not a recommendation to buy or sell any security.

Sector Allocation as of 12/31/18

Sector Allocation

Fund holdings and sector allocations are subject to change and are not a recommendation to buy or sell any security.

Asset Allocation as of 12/31/18

Sector Allocation

Allocations are subject to change at any time.

4-Star Overall Morningstar Rating™ as of 12/31/18 out of 322 Allocation -- 70% to 85% Equity Funds

The Overall Morningstar Rating™ for a fund is derived from a weighted average of the fund's three-year Morningstar Ratings™ metrics, which are based on risk-adjusted return performance.

John Gillespie

John D. Gillespie Portfolio Manager/Analyst

Mr. Gillespie has been a portfolio manager or securities analyst for more than 30 years. Since 1997, Mr. Gillespie has served as the managing member of Prospector Partners, LLC. Mr. Gillespie also serves as the managing member of Prospector Partners Asset Management, LLC, an affiliate that is registered with the SEC as an investment advisor and that acts as the investment advisor to Prospector Funds, Inc., a registered investment company. Mr. Gillespie served as a Director of White Mountains Insurance Group from 1999 until 2015. In addition, from 2002 to 2005, Mr. Gillespie served as non-executive Deputy Chairman of White Mountains Insurance Group and Chairman and President of their investment advisory subsidiary. From 1986 until 1997, Mr. Gillespie was an employee of T. Rowe Price Associates, Inc. At the end of his tenure at T. Rowe Price, Mr. Gillespie’s responsibilities included the management of assets of institutional investors, mutual funds, and closed-end investment companies. From 1980 through 1984, Mr. Gillespie was a Senior Financial Analyst at Geico Corporation. Mr. Gillespie received a B.A. cum laude from Bates College in 1980 and a M.B.A from the Graduate School of Business at Stanford University in 1986. In addition, Mr. Gillespie serves as Director and Chairman of Prospector Funds, Inc., and is also on the Board of Trustees and Chairman of the Investment Committee of Bates College. Mr. Gillespie’s past directorships include: Montpelier Re, Symetra Financial, Main Street America, Folksamerica, HG Global, Esurance, Tranzact, and One Beacon Insurance Group.

Kevin O’Brien

Kevin O’Brien, CFA Portfolio Manager/Analyst

Mr. O'Brien has been a portfolio manager or securities analyst for more than 25 years. Throughout his career, Mr. O'Brien has followed the financial services sector. In April 2003, Mr. O'Brien became a portfolio manager of the Investment Manager. Mr. O'Brien is also a portfolio manager of Prospector Partners Asset Management, LLC. In addition, from April 2003 to August 2005, Mr. O'Brien served as a Managing Director of White Mountains Advisors LLC. From April 1996 through April 2003, Mr. O'Brien was an employee of Neuberger Berman, where he began as an investment analyst (1996 – 1999), served as Vice President (1999 – 2001), and Managing Director (2001 – 2003). At the end of Mr. O'Brien's tenure at Neuberger Berman, Mr. O'Brien's responsibilities included the co-management of equity assets of institutional investors and mutual funds, including serving as co-manager of the Neuberger Berman Genesis Fund. Mr. O'Brien was responsible for following stocks in the financial services, consumer and technology sectors. From 1991 to 1996, Mr. O'Brien was an employee of Alex. Brown & Sons, where he was an analyst following the financial services industry. His coverage universe included property-casualty insurance, specialty finance, asset management, and diversified financial services. From 1986 to 1991, Mr. O'Brien analyzed investments and credit risks in the financial services industry. Mr. O'Brien received a B.S. magna cum laude from Central Connecticut State University in 1986. Additionally, Mr. O'Brien received a Chartered Financial Analyst designation in 1995.

Jason Kish, CPA, CFA Portfolio Manager/Analyst

Mr. Kish became a portfolio manager in 2013 and has been with Investment Manager since December 1997. Mr. Kish is also a portfolio manager of Prospector Partners Asset Management, LLC. He has been a portfolio manager or securities analyst for more than 20 years. He began as a junior analyst, covering all industries, eventually serving as the property-casualty analyst and became the Director of Research in 2010. From 1995 to 1997, Mr. Kish worked as an auditor at Coopers & Lybrand, LLP in Hartford, CT. Mr. Kish received a B.S.B.A. from Providence College in 1995. He received his Certified Public Accountant designation in 2000 and his Chartered Financial Analyst designation in 2004 .

Annual Report
December 31, 2017
Semi-Annual Report
June 30, 2017

Prospector Capital Appreciation Fund and Prospector Opportunity Fund are a separate series of Prospector Funds, Inc. an opened end no load mutual fund family that offers separate investment portfolios.

Prospector Partners Asset Management, LLC ("PPAM"), located in Guilford, Connecticut, is the Funds' investment manager. PPAM is registered as an investment adviser.

Please refer to the prospectus for important information about the investment company. The funds objectives, risks, charges, and expenses must be considered and read carefully before investing. You may also obtain a hard copy of the prospectus by calling 1-877-734-7862.

Mutual fund investing involves risk. Principal loss is possible. Investing in the Prospector Funds involves special risks, including but not limited to, risks associated with investing in small and mid size companies, value investing, debt securities, foreign securities, restricted securities, and derivatives. Please refer to the prospectus for further details.

The Prospector Funds are offered to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Prospector Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Prospector Capital Appreciation Fund was rated 5-Stars, 4-Stars and 3-Stars against the following numbers of Allocation--70% to 85% Equity funds over the following time periods: 322, 280 and 196 funds in the last three-, five- and ten-year period respectively. The Prospector Opportunity Fund was rated 5-Stars, 5-Stars and 3-Stars against the following numbers of Mid Cap Blend funds over the following time periods: 382, 335 and 235 funds in the last three-, five- and ten-year period respectively.

©2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. You cannot invest directly in an index.

Click here to view our Privacy Policy.

The Prospector Funds are distributed by Quasar Distributors, LLC