Hedge funds12 Jun 2019 08:53
Shorting is used by many, but professionals often use it as a hedge against risk. Working out why the short is open is not always easy. There are so many uses. As an example someone could be heavily invested in another gold share that it think will outperform HGM. The net effect of the short and the investment is the difference.
Shorting gold is in itself very risky. This share is my best performer for the past 5 years, and if the gold price trend is up, as many believe, yield this year will top 8% at the current share price. I always reinvest my dividends, and will do so until I retire.
It looks very well run, and the annual report is always impressive.