Canadian Energy Fund Turns 18-Cent Oil Bet Into Return Above 6,500%

Canada’s Ninepoint Energy Fund has earned a return of more than 6,500% on a stake in an oil company that was under severe financial strain when it invested.

The position, bought at 18 cents, became one of the energy sector’s standout investment bets in recent years, turning a distressed holding into a major gain.

The company’s financial difficulties were central to the backdrop of the purchase. Ninepoint took its stake when the oil producer faced acute pressure, rather than buying into an already secure business.

The scale of the return highlights the potential upside of investing in troubled energy companies. Such investments also carry significant risk, as financial distress can threaten the value of shareholders’ stakes.

The available details do not identify the oil company, specify when the fund made the purchase or establish whether it has sold the stake to lock in the gain.