Doug,
I was thinking a bit more about that article you posted and I had a few additional thoughts to add:
... to protect this hoard, Gould paid $2 million to two shameless
attorneys to lock up in litigation the assets of the NYGE and countless
brokers, as well as to defend the pair from the 300-plus law suits
subsequently filed against them. Some of this money also went to Boss
Tweed, who through the Tammany Society controlled New York City's
finances and politicians.....
This strikes me as quite similar to GATA actions. They are trying to ty up Central Bank gold holdings in litigation and political intrigue, preventing the CB's from properly managing their currencies.
And then there was this part that just didn't make sense to me:
As I understand it, Tiger did what most hedge funds do; they hedged this position. How? Tiger had sold short Gold bullion, and its gains from this short position as the price of Gold slid lower have more than offset the losses on the drop in the NDY stock price.
So this guy is trying to convince us that Tiger took a large long position in a gold company, an industry where the higher the gold price the more money they make, then shorted HEAVILY against gold as a "hedge"??
Australia's largest Gold mining company is Normandy Mining (NDY).
According to NDY's fourth quarter report dated June 30th, Tiger owned
11.68% of NDY. At present prices, the face value of that position is about US$156 million, surely not one of multi-billion Tiger's biggest positions, but nevertheless, it still is a big chunk of change.
As Hutch noted: petty cash. And one that should not be difficult at all to cover. Certainly when your banker has acquired 1/2 the Comex gold supply to help you out (if this story has any basis in fact).
Btw, if gold should rise, then that NDY position should climb as well for Tiger, giving them the liquidity to decrease that position at break even or even with a profit.
And one last edit. I don't know when Tiger was supposed to have acquired that position in NDY, but here is the 3 year chart for the stock:
feist.snap.com
finance.yahoo.com
So something isn't adding up here, Doug.
Regards,
Ron |
