Lithium Related Media Articles, page-23903

reply Scarpa

"To illustrate, if a SuperFund lent out shares and it made 5% on those shares, but the shorting led to that SP collapsing by say 20% would an individual holder in that fund be better off??"

A counter argument may be , super is a long term investment. If a fund lends out for 3 years and makes 5% pa doing so, and the share goes down and back up to be 20% higher in 3 years, the fund has amplified the return for the holder.

Ps I'm not a fan of shorting, in fact many companies I hold have been heavily shorted (to my detriment I 'm certain). However I invest knowing the rules and potential - hence have risk management processes to try and manage (which are being refined constantly with increased learnings).