Odey funds gain amid turmoil
Bill McIntosh
The main absolute return funds run by Odey Asset Management, one of London’s oldest hedge fund operators, have notched up strong returns in 2008, marking them out amid the declines that have hurt many rival managers.
Odey European, the firm’s flagship fund run by founding partner Crispin Odey, earned double digit percentage returns across its four fund classes. The euro fund class, which accounts for 60% of the fund’s 912 million euro in assets, returned 10.94% during the year.
The OEI Mac fund, which invests in the flagship offering, but with a currency overlay, did even better, gaining 43.39%. That raised the fund’s assets under management to $367 million by the end of 2008.
“We are very long term absolute return merchants,” David Stewart, Odey’s CEO said. “We are obsessed with trying not to lose capital and making money when there are opportunities.”
Meanwhile, Odey Capital Strategies, a global macro fund run by partner and strategist Nick Carn, gained 21.98%. The fund has $11 million in assets and now has a three year track record – a key hurdle for attracting many institutional investors.
Odey’s performance came despite the volatility engendered by wide ranging deleveraging across most hedge fund strategies. It also serves as vindication for the firm’s conservative investment style.
“In 2005 and 2006 we could see leverage was a real issue,” Stewart said. “We suffered for being early. Leverage made a lot of people look clever. Deleveraging has had the opposite effect.”
Though shorting proved lucrative in 2008, Stewart said the funds also made money being long, notably in insurers. “We are not universally bearish,” he added.
Odey European, the firm’s flagship fund run by founding partner Crispin Odey, earned double digit percentage returns across its four fund classes. The euro fund class, which accounts for 60% of the fund’s 912 million euro in assets, returned 10.94% during the year.
The OEI Mac fund, which invests in the flagship offering, but with a currency overlay, did even better, gaining 43.39%. That raised the fund’s assets under management to $367 million by the end of 2008.
“We are very long term absolute return merchants,” David Stewart, Odey’s CEO said. “We are obsessed with trying not to lose capital and making money when there are opportunities.”
Meanwhile, Odey Capital Strategies, a global macro fund run by partner and strategist Nick Carn, gained 21.98%. The fund has $11 million in assets and now has a three year track record – a key hurdle for attracting many institutional investors.
Odey’s performance came despite the volatility engendered by wide ranging deleveraging across most hedge fund strategies. It also serves as vindication for the firm’s conservative investment style.
“In 2005 and 2006 we could see leverage was a real issue,” Stewart said. “We suffered for being early. Leverage made a lot of people look clever. Deleveraging has had the opposite effect.”
Though shorting proved lucrative in 2008, Stewart said the funds also made money being long, notably in insurers. “We are not universally bearish,” he added.
