Crispin Odey Sees Global Slowdown That Will ‘Devastate’ EquitiesWill Wainewright
British hedge fund manager Crispin Odey told his investors that the world has entered an economic slowdown that will “devastate” equity markets.
Odey, founder of London-based Odey Asset Management, predicted central bankers will be unable to avert a damaging downturn, according to a report to investors. He said European Central Bank President Mario Draghi’s quantitative easing program, a 1.14 trillion-euro ($1.28 trillion) bond-buying plan announced yesterday, will “disappoint” markets.
“We used all our monetary firepower to avoid the first downturn in 2007-09, so we are really at a dangerous point,” Odey said, highlighting slowing growth in China, and falling commodity prices and incomes in emerging markets as threats. “The shorting opportunity looks as great as it was in 07/09.”
Odey European Inc., which manages $2.4 billion of the firm’s $12 billion, posted a 5.5 percent gain last year after returning 11.7 percent in December, according to the letter. The fund makes long and short bets on equities in European markets.
Financial News reported the letter earlier on Friday.