December 4, 2007 at 7:00 AM EST

Hedge fund manager Otto Spork believes the pummelling taken by resource stocks because of fears that the U.S. subprime mortgage mess would slow down the North American economy has created buying opportunities.

Mr. Spork runs the $20-million resource-oriented Sextant Strategic Opportunities Hedge Fund LP that was 85 per cent in cash by June before markets headed south last summer. "We saw that the markets were very high, and felt there was a correction coming," he said.   ...............

Mr. Spork is also upbeat on molybdenum - a metal with industrial uses like strengthening steel and removing sulphur from crude oil.

Molybdenum prices sat at around $3 or $4 a pound for many years, but in recent years have ramped up to the $32-$33 level, he said. "We think there is going to be more upside, but ... there is a lot of profit to the mining companies at these prices so that's how you have to look at it."