Odey Asset Management’s main hedge fund gained an estimated 5.2 percent in May, paring some year-to-date losses after the worst ever monthly return in April.
The Odey European Fund, which runs $2.3 billion, dropped a record 19 percent in April, according to an investor document obtained by Bloomberg News. It lost about 14 percent in the five months through May 30. A spokeswoman for Odey confirmed the performance figures.
Crispin Odey, the London-based firm’s founder, attributed the April loss to the fund’s foreign-exchange and short positions in emerging markets and oil. The fund also “did not respond quickly enough to the aggressive” quantitative easing under European Central Bank President Mario Draghi and the effects of declining oil prices in 2014, he wrote in a note.
“April was bloody,” Odey wrote in the note to investors. “Nobody likes being wrong. Nobody likes looking foolish. Nobody likes losing money.”
Odey said he has since cut currency leverage, with the fund “acting well,” especially in the second half of May.
Odey’s fund, which makes long and short bets on share prices, rose 5.5 percent last year and 26 percent in 2013. Odey Asset Management was founded in 1991 and has about $13 billion in assets, according to its website.
It hasn’t yet published an investor update for May.