Odey Hedge Fund Said to Drop 17% in 16 Days as Markets Rally

  • Plunge said to put main strategy down 17.4% for the year
  • Odey European said to have increased 7.6% in September

Crispin Odey’s flagship hedge fund plunged 16.8 percent in the first 16 days of October, reversing a September gain that had pared its losses for the year, according to a person with knowledge of the situation.

The loss by Odey European, a $1.4 billion fund betting on rises and declines in stocks, brings the drop for the year through Oct. 16 to 17.4 percent, said the person, who asked not to be identified because the information is private. The fund profited in August and September from Odey’s negative view of the Chinese economy.

A 7.6 percent increase in September cut the fund’s 2015 loss to 0.7 percent, said the person. Odey European posted a record monthly loss of 19 percent in April -- described as “bloody” by Odey in an investor letter -- before recovering in the following five months.

Short positions, or bets that shares will fall, against five companies -- ArcelorMittal, Las Vegas Sands Corp, Anglo American Plc, Volkswagen AG and Sands China Ltd. -- were the strategy’s five most profitable positions last month, according to an investor letter.

Odey, 56, founded Odey Asset Management, which has about $11 billion in assets, in 1991, according to its website. The firm’s Odey European strategy rose 5.5 percent last year and 26 percent in 2013.

Odey has acquired a colorful reputation among London’s hedge fund managers. In 2012, he got planning permission to build a 130,000-pound ($200,000) Palladian-style chicken house on his country estate a two-hour drive northwest of London.

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