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Which Hedge Funders Could Get Crushed by a Silver Nosedive?

Silver bar and coins
Thomas Northcut | Photodisc | Getty Images
Silver bar and coins

If gold is the long-term commodities love of the investment community, silver, surging for months now , was (at least until two days ago ) its hotly-followed mistress.

Now the price is tumbling—remember when it was hovering near $50 ?—and that means a headache for some hedge funders.

We looked specifically at holders of iShares Silver Trust for a look at some investors who could lose if silver continues to drop.

One major SLV stakeholder is Wexford Capital, a Greenwich-based hedge fund founded by former Goldman and Bear Stearns boys Charles Davidson, Joseph Jacobs and Robert Holtz, that as of Q4 2010 owned 841,000 shares according to Bloomberg data.

That holding, now worth about $36 million, was worth about $39.5 million on April 27 when SLV hit $47. At the end of December that stake was worth about $25 million. That means despite the recent drop, Wexford is still winning.

Wolverine Asset Management, run by Robert Bellick and Christopher Lazarus Gust, had a ~725,000 stake as of Q4.

Alphabet Asset Management, run by "longtime options trader" Jason Adler (and also employing former Deutsche Bank trader Nelson Saiers ) had a ~600,000 stake as of Q4.

One of the best known silver groupies, Eric Sprott of Sprott Asset Management, owned 262,000 shares at the end of 2010.

As a sidenote, Sprott AM was also, as of Q4, one of the biggest hedge fund stakeholders in silver streaming company, Silver Wheaton. The firm also just sold off a chunk of its PSLV holding—a silver ETF that he launched. Sprott AM got rid of $35 million in PSLV shares in last fortnight.

"Hedge funds overseen by Sprott... between April 18 and April 25 sold more than 1.6 million shares of the silver trust," according to ETF Trends .

This story originally appeared onBusiness Insider

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