Odey Asset Management has sharply reduced its equity exposure after a brutal October.
The London-based hedge fund’s flagship European fund plummeted 10.1% last month amidst the market volatility, Financial News reports.
“October proved to be painful,” firm namesake Crispin Odey wrote to investors. “We witnessed the first correction in markets since June.”
“Despite taking out banking exposure down after June, we were not spared,” he added.
The fund moved heavily into financial services this year after long shorting the sector. And despite October’s big decline, the fund remains up 34% on the year, far ahead of the average hedge fund, according to most industry indices.
“We used the decline as a dress rehearsal for an aggressive change of tack in our portfolio and ended the month with nearly half the net exposure to equities that we had at the beginning,” Odey wrote.