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Edit - I see you have read it. My point still stand though!

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GCar

13,330 Posts.

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25/01/18

13:03

Post #: 30566572
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Originally posted by GCar ↑

Did you not read the PDF that justfriendau posted..?

Hedge funds siphoning off $$ from the super funds - shorting has an unfair advantage over going long because it trips stop losses and margin calls. Please explain otherwise.

Doesn't matter how over- or under-valued a stock is, if you have access to enough shares to short, you can (almost always) make money via the influx of sales that are forced onto the market as you drop the price.

Super funds that are "active" i.e. trading, and lending stock to "other" funds to short, are most likely caught up in the trading swings and therefore some of the super funds' value is effectively siphoned off to those other funds. The "other" funds make money, and they can even be managed by the same mob that manage the super funds! So, they "rob" the fund members to make themselves money. Not too much though, they still like to report a 10 or 11% return to keep the members from going elsewhere, claiming this as an "excellent" annual return. Meanwhile, they, as a broader group, are making more than this, just not for the members!
Read the article.

Cheers

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Edit - I see you have read it. My point still stand though!

GXY Price at posting: $3.48 Sentiment: Buy Disclosure: Held
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