Odey European Fund Down More Than 19% in "Bloody April"

May 28 2015 | 11:05am ET

Crispin Odey’s flagship Odey European Fund has revealed an extraordinary 19.3% loss in what it described as a “bloody April”.

Among Europe’s best-known hedge fund managers, Odey disclosed the performance in a letter to investors, according to The Wall Street Journal. In the letter, he notes the €3.1 billion fund’s failure to capitalize on falling oil prices and the ECB’s quantitative easing program, as well as being on the wrong side of emerging markets and the U.S. dollar’s moves during the period.

The drop was the sixth double-digit loss for the fund, which was founded in 1992, according to the Journal article citing data in the letter. It ranks as the worst single-month result, beating a 14.1% pounding suffered in June 1995, and puts the fund down 18.2% for the year.

Odey’s letter describes a hedge fund under fire from all sides, saying “A portfolio built on global weakness coming out of China and even embroiling the developed world, which had been successful since June of last year, was attacked on all sides.” In comparison, the EurekaHedge European Hedge Fund Index booked a gain of 0.46% in April, while the MSCI Europe Index eked out 0.1% during the month. 

“Nobody likes being wrong. Nobody likes looking foolish. Nobody likes losing money," Odey told his investors in the letter.

Partly as a result of April’s performance, Odey has cut the fund’s foreign exchange leverage and reduced its book. In the letter, he says that for the second half of May, the fund is “acting well”.

Odey, who was once briefly married to Rupert Murdoch’s daughter, launched Odey Asset Management in 1991 and has grown it into a global investment manager with more than $13 billion in assets. 


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