hedge funds strategy

Market Neutral:

Short in Lynas and long in REE sector or long in one REE depressed stock.

In a world with so much uncertainty and fear of a double dip, a junior mine which will produce and sell REE in less than a litle more than a quarter, is not so important.

What is important as an strategy for hedge funds managers (just read the names of Hedge funds in apendix of last Morgan Stanley announcement), is ralling some shares (take for instance Arafura), and short Lynas.


This is were we are now.

Just pacience. Focus in Lynas intrinsec value.

No double dip will come, since US stimulous will be announced 20-21st September and Lynas will become a story of success. Very soon.

To risky for hedge fund managers when market becomes normalized to keep shorting.

Now, if you believe in the company, just take the opportunity to accumulate those shares that you were not able to buy at higher prices

I assume we?ll reach 12-15AUD before june 2012. And that?s what really matters.

I have my own opinion regarding Hedge Funds. Sometimes they lose money as well. Take for instance Volkswagen and Porsche experience. Sometimes HF lose stratospheric amounts of money.

Despite it?s a different case, I bet this could be repeating with Lynas. Buying preassure will return soon or latter.