Skip to content
Subscriber Only

Hedge Fund That Won Big Shorting U.S. Shale Is Bullish on Canada

  • Westbeck gained 40% in 2019 after back-to-back annual losses
  • Canadian mid-cap energy sector poised to thrive in 2020
Updated on

After big wins shorting U.S. shale companies last year, one energy hedge fund is turning its sights on the beaten-down Canadian oil sector.

After gaining 40% last year, according to a person familiar with the results, Westbeck Capital Management is betting Canadian firms are better positioned because they don’t need to spend as much as their U.S. counterparts, giving them a higher level of free cash flow. Also, oil fields in Canada aren’t experiencing the rapid rate of production declines that has plagued companies operating in American shale fields.