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ProShares Hedge Replication ETF V.HDG


Primary Symbol: HDG

The investment seeks investment results, before fees and expenses, that track the performance of the Merrill Lynch Factor Model-Exchange Series (the benchmark). The fund invests in financial instruments that ProShare Advisors believes, in combination, should track the performance of the benchmark. The benchmark seeks to provide the risk and return characteristics of the hedge fund asset class by targeting a high correlation to the HFRI Fund Weighted Composite Index (the HFRI). The HFRI is designed to reflect hedge fund industry performance through an equally weighted composite of over 2000 constituent funds. The fund is non-diversified.


ARCA:HDG - Post by User

Post by briton Nov 06, 2008 12:39am
549 Views
Post# 15569150

Interesting Alternative MP

Interesting Alternative MPHey MP,

Your angle on what might transpire is definitely intriguing.  Let me add a second scenario:

I could, alternatively, envisage Sprott Resources (formerly General Minerals) making an all cash, or share exchange bid for HDG in the near future.  That would add the HDG cash on hand to its treasury.  Then it would take the HDG properties (which were originally part of SCP), and spin them off again into another company .... a deja vu move.

I don't see HDG collapsing its treasury by paying a dividend, however.  That would not make sense, especially when junior financings will be extremely hard to come by in the next couple of years.  If the latter did in fact play out it would be only as a last resort.

Cheers,

Brit
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