Odey plans Ucits version of flagship European hedge fund strategy
Odey Asset Management is understood to be drafting plans for a Ucits version of Crispin Odey’s flagship European hedge fund strategy as part of a wider expansion of its range.
The launch of the new Dublin-domiciled fund will mark the first time Ucits investors have been able to access a long/short strategy run by Odey himself.
First launched in 1992, the $1.8bn Odey European fund returned 24% last year – the sixth best hedge fund return globally, according to Bloomberg data.
The fund had a tough 2011, shedding 20%, but the vehicle has produced compound annual gross returns of 13.4% since inception, according to figures from Odey.
Key stock picks over the past year include Barclays, BSkyB and fellow hedge fund manager Man Group. The latter has endured a torrid time over the past two years due to the struggles of its ‘black box’ strategy, AHL, but Odey is backing a revival in the group’s fortunes.
Regulatory filings show Odey as a house was short stocks including miner Lonmin, Home Retail Group and newspaper firm Trinity Mirror at the end of 2012, although these bets do not necessarily form part of the European fund strategy.
The plans mark a new phase in the boutique’s rollout of Ucits-compliant strategies. Odey himself runs three existing Ucits vehicles: the Opus fund, a global equity portfolio; Pan European, a European equity fund; and Allegra International, an equity and bond fund.
The boutique’s most recent Ucits launch was the Odey Odyssey fund, a go-anywhere multi-asset vehicle managed by Tim Bond, in October 2011.
Investment Week understands the group is planning to launch other Ucits IV funds in the coming weeks, including a long/short equity fund for Massey Lopes, a portfolio manager on the European strategy.
The Odey Naver fund, a thematic global long/short portfolio, will target long-term capital appreciation with an emphasis on risk control and capital appreciation.
The fund will take 30-60 positions, the top ten accounting for 30%-50% of the portfolio, with a typical net equity exposure of -25% to +75% and a maximum gross exposure of 300%.
Some 50%-100% of its exposure will focus on technological, macroeconomic change stories and companies exposed to changes in the terms of trade.
Cyclical plays will form 10%-25% of the portfolio, with between 15%-50% focused on structurally challenged and underappreciated quality businesses.
Odey declined to comment.