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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (18578)	8/17/2006 9:30:29 PM
From: RealMuLan	Read Replies (2) \| Respond to of 78417

Cazenove Hedge Fund Shorts Mining Stocks By: Charles Carlisle Posted: '17-AUG-06 10:27' GMT © Mineweb 1997-2006 mineweb.net LONDON (Mineweb.com) -- According to a report from Reuters, a hedge fund manager at Cazenove Capital Management has taken short positions in a number of mining stocks. Steve Cordell, who co-manages the Euro 230 million Cazenove European Equity Absolute Return Fund told the news agency he is looking to the mining stocks to be at lower levels next year than they are now. Cazenove Capital Management has only been in existence since the end of last year when it was demerged from the Cazenove Group as an independent asset management business. Cazenove is one of London’s oldest and most respected financial institutions and also co-owns a major investment banking business with JP Morgan. Cordell expects the world economy to slow down and the fund he co-manages is short in a number of cyclical sectors which he feels are likely to suffer as a result. These include chemicals, engineering, steel and mining. He feels mining is likely to be hit by higher costs, while metal prices may fall back from their peak: the FT World/Mining Index has fallen by 16 percent since May. However, May to September historically has proved to be a weak period for stocks in general in more years than not. Cordell points out that many mining companies have shown an extremely strong performance this year with record earnings and profits, and if metal prices stagnate at current levels, or fall back, the increasing costs and the necessity to work in more difficult areas of the world – as witness the problems being faced by some major mining companies at the moment – is likely to lead to a fall in earnings in 2007.