West Face Capital, according to The Globe and Mail, is “believed to be opposed” to Maple Leaf Foods plan to spend a billion dollars upgrading its plants to compete with bigger food manufacturers. I’m calling bullshit.

Background: The hedge fund, as discussed here, bought a 10% stake in the company last summer. What no one is saying is that West Face is already up more than 30% on its investment. The hedge fund could sell its stake for a gain if it truly didn’t like the plan. What the media is also not saying is that West Face clearly agrees with Maple Leaf’s plan. Although the fund is trying to get a seat on the board by attacking MFI’s governance, it really can’t do anything given the McCain family’s stranglehold on the stock and the blue chip board. West Face has known this all along.

West Face would sell if it didn’t believe in the plan. It got the stock cheap and used its name and reputation to fatten its return, so far anyway. It might work out but don’t chase this stock – the people involved have advantages you’ll never enjoy.