Crispin Odey closes flagship fund after a stellar year of triple-digit gains.
Crispin Odey is known as a Perma bear and his bearish bets that the sovereign bond bubble will pop has paid off in 2022.
Crispin Odey closes flagship fund and is doubling down on fighting the Fed
Crispin Odey, a British billionaire is launching a daring fight, a holy crusade against central banks around the world.
He is now betting everything on a “violent unwind” of the QE bubble, loading up on gold and shorting every government bond he could find.
“Crispin Odey closes flagship fund after a stellar year of triple-digit gains”
WEALTH TRAINING COMPANY
Crispin Odey closes their flagship fund believing the bear market in bonds has just started
In 2018, the permabear ominously warned:
“…my money remains on the likelihood that this is the early stages of a profound bear market in assets. Populism in the west has a long way to go. QE has undermined savings and now populism will undermine the price mechanism. We are at the start of a 25-year cycle so get used to it,” he wrote.
What we had since then was fantasy markets fuelled by the 2020 global lockdown money printing courtesy of central banks.
Two years later investors are experiencing the worst returns in more than forty years as the bubble of everything implodes. Frankly, the only haven has been cash and it has been a game of not where can I make the most money but how do I protect capital?
“…my money remains on the likelihood that this is the early stages of a profound bear market in assets”
WEALTH TRAINING COMPANY
For the daring bear traders who profit from declining markets using derivatives, this has been easy money.
“We want to keep the AUM within a level that does not compromise our ability to maintain the strategy’s risk/reward profile, and consequently performance,” Michael Ede, partner at Odey Asset Management, said in the announcement.
“This decision to soft close the funds will be kept under review.”
His European fund gained 193% so far this year after gilt turmoil.
Odey European managed 402 million euros ($399 million) at the end of September, according to an investor document.
“Don’t analyze what central bankers say. Analyze their actions”
– Wealth Training Company
Crispin Odey closes flagship fund a mixed career of ebbs and flows
The fund managed $1.8 billion of assets at its peak in 2015 but shrunk to as low as 93 million euros in early 2021 as it was burned by bets against stocks in booming markets.
Crispin Odey closes flagship fund, but past performance no guarantee of future success
Don’t analyze what central bankers say. Analyze their actions.
In the last few months, we have seen Bank of England gilt buying to prevent the gilt market from a meltdown, and GBP from collapsing. The Fed has deployed the largest USD credit swap in its history to prevent another Repo rate spiral crisis.
In short commercial banks are not confident lending short-term to each other to finance their day-to-day operations.
The Fed is effectively bailing out the banks, providing liquidity to banks via USD credit SWAP lines via SNB.
The Fed’s most aggressive rate hikes in 2022 have guaranteed a property market collapse. The backdoor pivot is here, and the full-on pivot comes next.