FYI: Norm Lamarche is betting the energy rally that helped him become the top performing mutual fund manager focused on Canada this year will roll into 2017, sweeping drillers and other services companies higher.
Lamarche, fund manager at Toronto-based Logiq Asset Management Inc., expects crude prices to grind into the $55 to $60 a barrel range next year from about $52 now. That means more gains ahead for oilfield services companies he owns such as Canyon Services Group Inc., Calfrac Well Services Ltd. and Trican Well Service Ltd., he said.
“They will be positioned in a market of growing sales momentum, and they’ve already pushed through some price increases so there’s a potential for more there,” he said in an interview last week. “We’ve been big fans of what’s taken place in this energy renaissance.”
Lamarche’s Front Street Special Opportunities Class fund, with C$151 million ($115 million) under management, returned 63 percent as of Dec. 13, top among 467 funds with at least C$100 million in assets invested primarily in Canada, according to data compiled by Bloomberg. That puts it almost 6 percentage points ahead of its peers and more than triple the 18 percent gain in the S&P/TSX Composite index.
The fund has a 75 percent weighting in oil and gas and energy-equipment services, with another 21 percent in metals and mining, according to the fund’s fact sheet.
Regards,
Ted
https://www.bloomberg.com/news/articles/2016-12-14/top-canada-mutual-fund-manager-bullish-on-oil-services-for-2017
