Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Fund Result: Odey European fund, Crispin Odey

Fund Result: Odey European fund, Crispin Odey

Crispin Odey’s European hedge fund offered proof that the wheels did not entirely come off of short investing in October, posting a 2.57% loss versus a -12.91% index return.

The result came despite a top five holding (3.5%) in Volkswagen which cost the fund -1.65% in the month as investors were caught out by Porsche’s surprise takeover.

The 5.69% growth from short equity positions was the sole strategy to remain positive in October and was not enough to outweigh the negative hit from other asset classes.

Long equity positions were down 7.44% over the month, while index futures were down 0.36%.

In his commentary for the month, Odey struck a bullish tone but questioned whether investors who were nursing heavy losses would be prepared to commit to markets.

‘Today they offer returns that are mouth-watering, but will investors, who have never taken a risk before take one when the return/risk profiles are clearly in favour of the risk taker?’ he asked.  

The fund’s orientation suggested Odey has little time for warnings about an imminent crisis among insurers, with his largest long overweight in the sector. Banks remained his largest short position.

Citywire verdict: Odey’s fund has suffered in recent months and his reputation took a hit after he revealed his short exposure of 0.35% on Investec in October. That said, he is highly regarded in the industry and has made some shrewd moves in the current environment. Citywire continues to back him.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter