Odey loses 31%, wiping out 4 years of gains

Stockmarket-Stock-Market-Dice-Gamble-Investment-700.jpgCrispin Odey’s European fund has lost 31.1 per cent in the year so far, bringing the fund’s value down to levels seen in January 2012.

The Odey European fund, run by the vocal founder of Odey Asset Management, has dropped by more than 30 per cent to the middle of April. Odey has been hit by his picks against emerging markets and China, and related currencies, reports the Financial Times.

Odey is wary of the impact of central bank moves around the globe. In a letter to investors at the end of March he said that there had been a large misallocation of capital and investment around the world.

“QE is merely encouraging misdirected investment. Remember it was Keynes, the architect of [central bank] thinking, who said, ‘It is good for people to travel, goods to travel but not for savings to travel.’ The disconnect between travelling and arriving may be coming home to roost,” he said at the time.

At the start of last year Odey warned that the world was on the brink of recession, that “will be remembered in a hundred years”. He said that central bankers had little policy left to execute to stave off a recession.