Crispin Odey has taken over management of the Dublin-based Odey Pan European fund, which has now bee...
Crispin Odey has taken over management of the Dublin-based Odey Pan European fund, which has now been opened up to UK domestic investors. Odey takes over the fund following Hugh Hendry's decision to concentrate solely on hedge funds, while Feras Al-Chalabi takes over the £200m Odey Continental European portfolio.
The Pan European fund, which has no performance fee and a 1.5% annual charge, has much in common with Odey's existing global portfolio, Opus, which is ranked first in the International Investment's sister publication, Investment Week's Consistent 50 table.
On Continental European, Al-Chalabi intends to maintain Hendry's aggressive use of cash and bonds, taking weightings as high as 35% at times when he is bearish. However, rather than depending on this allocation, he said he plans to place greater emphasis on achieving alpha through equity selection.
Recent changes to the portfolio include a sell-down of some 25% of the portfolio's weighting in smaller firms plus the introduction of a play on insurance and a bias towards growth stocks.
The move out of smaller companies is on the back of Odey's belief that this area is starting to look like a momentum play. It was this directional change that was a part of the reason behind Hendry's departure from long-only funds. His step down has been in the pipeline for some time but it is understood the situation came to a head over his refusal to take part in the group's debate over market direction.
Stressing that the split was amicable, Crispin Odey noted Hendry's way of investing did not incorporate the group's view on the market. He said: "We have always been anti-index, value- and small-cap oriented but now we are investing in FTSE 100 stocks and buying into growth. There are a lot of stocks at the larger end of the market that are incorrectly priced and offer significant opportunities, while small caps are starting to have all the characteristics of 2000, namely a momentum play."
Hendry plans to set up his own hedge fund firm and is in negotiations with Odey about whether he will take his existing hedge fund Eclectica.
See Leader, page 24.
Due to leave 31 May
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