Eureka Correspondence

Shorting stocks, ISIS and investing in Magellan's exchange-traded managed fund.

A great point is made in Robert Gottliebsen's article Tough times for value investors (February 25) regarding the practice of managed funds and super funds lending shares knowing that they will be used to "short" the market. This practice is one of the reasons why I lost confidence in the superannuation managers and formed my own SMSF. To my simple mind this is like lending someone your new car, knowing that their intention is to bring it back trashed! It is my view that such activity is a breach of the superannuation manager's fundamental obligations to act in good faith and consistently in the best interest of their clients without any conflict of interests.




{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles