London Hedge Fund Makes $150 Million on Bust Norwegian Papermaker

  • Oceanwood-led pivot to containerboard has proved canny move
  • Norske Skog’s ill-timed bet on paper left the company exposed
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Oceanwood Capital Management LLP’s bet on a bankrupt Norwegian newsprint manufacturer has finally paid off, nearly five years after the hedge fund bought it out of bankruptcy.

The London-based outfit made around $150 million in its wager on Norske Skog ASA, after an initial investment of around $300 million, according to a person familiar with the numbers. Oceanwood sold the vast majority of its shares in the company, according to a statementBloomberg Terminal issued last week.