Leading Brexiteer fund manager
Bloomberg on Monday reported that Odey said he is now shorting sterling on the expectation the currency will slide in a no deal Brexit scenario.
The move is a dramatic change in direction from the position he took just weeks ago in January, when he said his view ‘is that [Brexit] ain’t going to happen’ due to the political arithmetic in parliament.
Odey predicted at the time that there could be a ‘quite strong’ rally in the pound, potentially by as much as 5.4% to a nine-month high of $1.35, if MPs called a stop to leaving the EU.
In November, he warned sterling could lose a fifth of its value if the UK exits Europe without striking a deal.
The hedge fund multimillionaire has long been a leading backer of Brexit, donating nearly £1 million to the Leave campaign and praising the outcome of the vote in 2016 as a ‘brave’ decision.
He has warned in each of his missives to investors over the last four years that equities could fall by 50%.
According to a study from HSBC's annual investment group released last month, the Odey European fund returned 53% in 2018, one of just 16 hedge funds out of 450 to deliver positive returns before fees during the period.
That was a notable reversal of fortune from a drop of 20.5% in 2017, as aggressively bearish bets on the UK economy backfired.
The turnaround was the result of a number of successful shorts in the retail sector against firms such as Intu, which slumped 42% following the collapse of a takeover bid.
The return to fortune was not enough to reverse the 89.6% loss he endured between 2015 and 2017, however.