By Tim Shufelt for Globe & Mail – December 4, 2016
As with many great investments, one of the best bond trades in recent Canadian history
emerged through a haze of fear.
As the worst crude oil bust in decades was unfolding, reams of high-yield Canadian oil and
gas bonds sank to distressed prices as the market began to expect a wave of
bankruptcies.
Few at the time saw the sell-off as a rare and extraordinary opportunity, and most that
did were unable to capitalize.
“Market makers were telling me, ‘Hanif, you’re the only buyer in town,’ which was a little
unnerving,” said Hanif Mamdani, head of alternative investments for RBC Global Asset
Management.
He and his team scooped up more than $2-billion worth of higher-quality issues
discounted by as much as 40 per cent from face value. Now, with the Canadian oil patch
having rallied after a painful restructuring, and with industry deal-making on the rise,
those bets are being richly rewarded. “Coming up on 30 years in this business, this was by
far the most profitable trade I’ve seen,” Mr. Mamdani said, pegging his gains at
$1.2-billion and counting.
More at the source: http://www.theglobeandmail.com/globe-investor/inside-the-market/how-the-sell-off-in-canadian-energy-debt-became-a-rare-opportunity/article33201750/
Earlier on Hanif Mamdani:
- Hanif Mamdani: The Top Hedge Funds of 2016 Share Best Bets for This Year – Bloomberg
- Hanif Mamdani: How one man turned the oil crash into a $1.2-billion win | Globe & Mail
- Hanif Mamdani: Top Canadian investor braces for biggest opportunity yet
- Invest like a legend: Hanif Mamdani – The Globe and Mail
- Hanif Mamdani – A Stellar Performer
- Hanif Mamdani awarded 2011 Fund Manager of the Year distinction
- Hanif Mamdani, Head of Alternative Investments, PH&N and RBC Asset Management, Vancouver
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