A Mayfair hedge fund and one of Canada’s largest pension plans are among the biggest losers from a dramatic recovery at Premier Oil.
The explorer’s share price rocketed 30% last week after it unveiled a giant discovery in the Gulf of Mexico. The Zama field, in which Premier owns a 25% stake, could produce as many as 2bn barrels of oil, the company said last week.
The discovery has left a slew of hedge funds nursing losses. Premier has been a popular target for short sellers over the past year. The shares have been buffeted during lengthy talks over a restructuring of its $2.7bn (£2bn) debt pile, with just under a third in the hands of short sellers, according to data from IHS Markit.
GLG, one of London’s best-known hedge funds, has built up a short position equivalent to 1.1% of the company. The Canada Pension Plan has also bet heavily on a fall in the Premier share price.