Odey Starts the Year with Strong Returns

Odey Starts the Year with Strong Returns

Odey Asset Management has done magic with bagging big returns, the massive gains have not slowed even slightly in the new year. We have already mentioned how the firm’s flagship Odey European (AUM $2 billion) has gained 11.45 percent for the year as of February. Other smaller allocations like, Odey Continental European Fund (AUM $281 million) was up 10.6 percent while Odey OPUS Fund ($468 million) was up 13.5 percent in the first two months of 2013. Odey was among  the best performing hedge funds in 2012 .

Odey Starts the Year with Strong Returns

Odey OPUS gained from British Sky Broadcasting Group plc (PINK:BSYBY) (LON:BSY) and Sky Deutschland AG (FRA:SKYD) (ETR:SKYD) which are among its top holdings. The fund lost in BP plc (NYSE:BP) (LON:BP)  and RSA Insurance Group plc (LON:RSA).

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Interestingly, Crispin Odey is not as critical of Ben Bernanke as so many others in the hedge fund community are, in fact if anything he appreciates the effect fiscal easing has had on the economies worldwide. He is also not shy to accept that Bernanke’s policies can stimulate a boom in the U.S. economy.

Odey Continental European, managed by Feras Al-Chalabi, profited from EADS NV (EPA:EAD), Sky Deutschland AG (FRA:SKYD) (ETR:SKYD) in February while losing in Credit Suisse Group AG (NYSE:CS) and Volkswagen AG (PINK:VLKAY) (PINK:VLKPY). Going forward, the fund is positioned to cash returns from the expected consolidation of European industries in sectors like, autos, airlines and media.

Other than the long positions mentioned above, Odey Asset Management has several short positions disclosed in European equities. In U.K. Odey has a short bet in Trinity Mirror plc (PINK:TNMRY) (LON:TNI), U.K.’s second largest newspaper group. The position has suddenly become very profitable as Trinity Mirror plc (PINK:TNMRY) (LON:TNI) became embroiled in a hacking scandal that also led to arrests.

The stock has declined almost 25 percent in the past week. Odey covered their position slightly earlier this month but the fund added to the short after the stock dipped. Odey has a number of short bets in U.K., including Apr Energy PLC (LON:APR) and Lonmin Plc (PINK:LNMIY) (LON:LMI) which have declined during Odey’s ownership.

Odey also has a short position in Kemira Oyj (HEL:KRA1V) of 1.13 percent of the company’s shares. The stock is down over 6 percent YTD. Metso Oyj (PINK:MXCYY) (HEL:MEO1V) was another short position that was recently acquired. Odey has held a short bet in Banca Monte dei Paschi di Siena SpA (BIT:BMPS) which is down 13 percent YTD. The Italian bank is a frequently shorted stock among hedge funds. Odey has several other major short positions, for the full list visit our page for Hedge Fund Short Positions In Europe.

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