Flagship Odey fund slimmed down by manager Neave, exits commodity futures
02/08/2023 12:08
By Nell Mackenzie
LONDON, Aug 2 (Reuters) - Freddie Neave has lowered the
risk profile of Crispin Odey's flagship fund, which he took over
the management of in June, according to an investor letter seen
by Reuters on Wednesday.
Crispin Odey, 64, was ousted in June from Odey Asset
Management (OAM), which he founded in 1991, after the Financial
Times and Tortoise Media reported that 13 women had alleged that
he had sexually assaulted or harassed them.
Odey has denied the allegations.
OAM, which declined to comment, will send out further
correspondence about how the Odey European Inc fund will be
restructured, the letter said.
OAM reorganised many of its funds in June and Neave took
over the flagship Odey European Inc fund, amid fears of an
investor exodus following the allegations.
Since then, Neave has reduced the size of the hedge fund's
investments in stocks, bonds and, in June, sold out of its gold
futures. He has also increased the fund's liquidity, or the
amount of cash in hand it boasts, he said in the letter.
Performance for the fund is down 13.6% this year and, since
February, it has shrunk in size by 28 million euros ($31
million), from 284 million euros.
While its government bond book added a 3% boost, the long
and short side of its stocks portfolio had negative results. The
fund closed out its direct exposure to gold futures, the letter
said.
Short positions, which are a bet on a share price falling,
on U.S. tech stocks like Tesla TSLA.O and United Rentals
URI.N , as well as long investments on rental company Leopalace
8848.T , Learning Technologies LTGL.L and Jadestone Energy
JSE.L added to the negative performance.
Leopalace declined to comment. The other companies did not
immediately respond to requests for comment.
Odey European Inc has kept some exposure to commodities
through long positions related to the crude and palm oil company
stocks, the letter said.
($1 = 0.9103 euros)
(Reporting by Nell Mackenzie; Editing by Amanda Cooper and
Alexander Smith)
((Nell.Mackenzie@thomsonreuters.com; https://twitter.com/nellmooney;))