possible reason for the large selling, page-20

i have a theory on this.

a few months back when FMG was being shorted i posted that it was a possibility that Harbinger had lent its stock out to a related subsidiary and then sold the stock on market, therefore enabling Harbinger to get around the disclousre rule.

if it is that case that Mac has been selling and using this strategy it could be because they can then close out the position later on by buying it back.

in Harbingers case they were probably selling at around $10 and can now close out the position at $2.50 and then deliver the stock back to the ultimate holding fund but in effect creamed off the difference between $10 and $2.50.

i think this strategy is often used to get around disclosing the positions to the market and it is something i wouldnt put past macquarie.