OnyxPoint Fund Soared 96% in 2020 on Contrary Energy Bets
- Opportunistic credit fund wagered on beat-up oil and gas firms
- OnyxPoint sees end of U.S. shale hegemony and green-tech mania
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OnyxPoint Global Management LP’s tactical opportunities fund saw gross returns of 96% last year, driven by bets on high-quality energy assets as investors fled the sector.
Positions in Parsley Energy Inc. and QEP Resources Inc. helped propel the fund to a 68% net return as it scooped up deeply discounted bonds in both investment-grade and high-yield companies, according to an investor letter seen by Bloomberg. Energy companies suffered during a 2020 sell-off that began in March, when the Covid pandemic stalled economies and oil demand.