Odey Asset Management’s star-studded returns have suffered a few bumpy months. OEI MAC which invests in the flagship Odey European was down 1.5% in September as its currency book, bond holdings and short equity positions underperformed. For the year, OEI MAC is up 17% and manages $900 million.
Odey gains in short Apple, loses in Peugeot
Odey European has a longstanding short in Apple Inc. (NASDAQ:AAPL), which was profitable in September. Odey Asset Management is known to be bullish on Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). Other than these, Odey gained in Kazakhmys plc (LON:KAZ) and Polymetal International PLC (LON:POLY)
Crispin Odey says he found attractive opportunities in U.S. shale oil and gas and medical technology names. Odey remains bullish on equities in general and sees further upside until interest rates rise.
The fund has been betting against the French automaker Peugeot SA (OTCMKTS:PEUGY)(EPA:UG) for several quarters now. While the position underperformed in September, Peugeot broke its multi-month rally last week and shares are down 13% in October so far, thus bringing some respite for shortsellers. Other short positions that did not do well last month were Air France – KLM (EPA:AF) and Imperial Tobacco Group PLC (OTCMKTS:ITYBY) (LON:IMT). Air France is also a popular short among noted hedge funds.
In the long book OEI MAC was up in Sky Deutschland AG (ETR:SKYD) (FRA:SKYD), Sports Direct International Plc (LON:SPD) The fund lost in AUD/USD and USD/ZAR positions in last month.
Odey Absolute Return gains from long Nokia
Odey Asset Management’s UCITS IV long/short equity fund, Odey Absolute Return gained a brilliant 4.9% in September, pushing the YTD gains to +35.8%. The best performing long bets of the fund were Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), Ericsson (NASDAQ:ERIC) Delta Air Lines, Inc. (NYSE:DAL), Sky Deutschland AG (ETR:SKYD) (FRA:SKYD) and others.
The fund lost in long Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and Barclays PLC (NYSE:BCS) (LON:BARC).
In the monthly commentary, Odey Absolute Return’s James Hanbury and Jamie Grimston note that in Q3 they have mainly gained from the telecom and airlines sectors. Among airlines, the fund also holds a position in easyJet plc (LON:EZJ) and Ryanair Holdings plc (NASDAQ:RYAAY). Ericsson is the fund’s fourth largest holding and the managers believe that advancement in network technology in Europe offers significant upside in holding a position here. The fund wrote that European telecom operators will benefit as 3G and 4G technology is ramped up in the region. The fund increased positions in Ericsson and Nokia in last month.
Odey Absolute Return manages $1.37 billion.