Friday, 27 November 2015
Last updated 1 day ago
Jul 6 2010 | 12:34pm ET
Odey Asset Management chief Crispin Odey admitted he underestimated bonds in May, as his Opus hedge fund fell 7.8%.
Odey was short fixed-income and long equities, the Financial Times reports. But it was bonds that did the advancing in May, and stocks that took a plunge.
“The price action of May for all asset classes was only explicable on the ground that Europe and indeed the world is going to follow Japan into deflation,” Odey explained. “Markets are worrying, in many ways rightly, that with corporate sitting on cash, a fall in government expenditure is not going to be met by a rise in private sector spending and employment. Thus, the market was pricing in a double-dip.”
Odey remains bullish, he said, calling stocks “cheap” compared to other asset classes. Still, he cut his equity exposure to 40% of the hedge fund’s assets, as well as slashing his bond shorts to less than 20%.
“It is highly unusual for a new bear market in equities to begin as profit estimates are being upgraded as they are now,” he said.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…