Leading Brexiteer fund manager Crispin Odey has readopted a negative outlook on the pound as the UK comes closer to dropping out of the EU on 29 March without an agreement in place.

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.