New York (HedgeCo.net) – HedgeCo.net featured a story about Crispin Odey’s main hedge fund back in May that discussed the fund’s loss of 19.3% in April. The fund was betting against emerging markets and it took a huge hit on Plus500 Ltd, where they were the single largest shareholder. It seems the tides have turned now as Bloomberg reported that the Odey European fund is up 9% this month.
Odey maintained their bearish bets on China and they are now reaping the rewards as the Shanghai Composite Index has fallen over 19% so far in the month of August. The drop has allowed Odey to trim what was a year to date loss of 18.2% down. According to the Bloomberg article the fund was only down 5% as of Monday. With continued selling on Tuesday, the fund likely made up more ground.
Odey’s firm manages approximately $12.8 billion with $3.2 billion of that in the flagship Odey European Fund. Odey predicted in July that a devaluation by China would lead to deflation breaking out around the world and that China’s economic problems would spread globally.