Digging through the regulatory filings, the fund that holds GXY is the World Mining Fund, which is a fund that holds mining stocks with the objective of delivering positive investment returns to its investors. It does not take short positions, however it does lend out its stock in order to enhance fund returns. I have had some experience in this kind of thing and it's unlikely that the fund manager would know who is the ultimate borrower of their stock... All they would know is that their stock has been lent. Their selling appears to have commenced after the quarterly, suggesting that was the catalyst for the decision to sell out, but not conclusive (maybe they found something else they liked more). Nevertheless, their selling has made it easier to cover shorts than otherwise, but it has also made it easier for a new institution to buy in size. In some ways, the shorters had a bet against them, they lost and are moving on.
Obviously, you can't rule anything out, but a conspiracy between the fund manager and the shorters is unlikely to me.
Google something like Blackrock world mining fund annual report, then follow your nose to see how they hold/held GXY and other things.
GXY Price at posting:
$1.52 Sentiment: None Disclosure: Not Held
