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

To: Tommaso who wrote (8931)	2/27/2005 3:25:08 PM
From: Taikun	Respond to of 11633

This is what I cannot understand about these hedge funds who do these paired trades. I heard a hedge fund manager who wanted to do this trade a few months back, just after the Canadian gov't divested their Petro-Canada shares: Long: EnCana Short: Petro-Canada Rationale: have to be short something in the same sector to protect against downside risk, so they chose the laggard of the sector, they said Outcome: both stocks went up No kidding! I guess that's what you get in an energy bull! I fail to understand these hedge fund trades but I have a better idea of where their performance comes from.