A growing chorus of Australian fund managers are taking on the army of hedge funds targeting lithium stocks, betting that a resurgence in prices will force the short sellers to cover their positions, turbocharging the rally in the sector.
David Franklyn of Perth-based Argonaut upped his exposure to lithium stocks in June despite prices of spodumene, the type of lithium that is mined in Australia, crashing to a four-year low of $US575 a tonne and the producers being among the most shorted stocks on the ASX.
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