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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: bill who wrote (1759)	11/4/2001 9:16:55 AM
From: Lorne Larson	Respond to of 11633

There seems to be some concern with possible fall-offs in the prices of the oil and gas trusts. Anyone considered setting up a hedge to protect the price, while still collecting your distributions? In other words stay long the trusts (and collect the distributions), but go short something else in the energy group. If so, what do you short? I would think possibly an energy related index such as the XEG in Canada, or one of the many in the U.S - XOI, OIH, XNG, etc. The trick would be to find something that tracked pretty closely the oil and gas trusts on a long term basis. Curious as to whether anyone has had a look at this. Doesn't seem to me that you would need a full hedge, because the distributions from the trusts (based on their own commodity hedges) should support their prices - in a major collapse they should hold up better than the regular oil stocks. Maybe a 50% hedge would work.