Canadian Energy Fund Turns 18-Cent Oil Bet Into Return of More Than 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 pressure when it invested.

The holding, bought at 18 cents a share, became one of the standout energy-sector investment bets of recent years. Its gains marked a sharp reversal from the difficult circumstances surrounding the company at the time of purchase.

The investment illustrates the potential upside of buying into a financially troubled business. In this case, the fund’s low entry price provided the basis for an exceptionally large percentage return as the value of its holding rose.

The available details do not identify the oil company, the size of the fund’s stake or how long it held the investment. They also do not establish whether the fund has sold the shares and realised the gain.