(Bloomberg) — Canadian hedge funds which boosted short positions outperformed in what was the worst year for the sector since 2011. Focusing on small companies also helped. Shorting will be key again this year, according to Forge First Asset Management Inc., whose 8.5 percent return put it first among 67 Canadian hedge funds tracked by Venator Capital Management Ltd. Forge First was able to hold gains it had in the first nine months of the year through the carnage of the last quarter by shorting the stocks of a diverse portfolio of cash-burning companies, said Andrew McCreath, chief investment officer of the Toronto-based firm, which has C$125 million ($95 million) under management. Read more here.