Forum Topic

It's not all bad news, sort of

Some hedge funds are doing well. So there is hope for us all then.https://www.theguardian.com/business/2020/apr/09/hedge-funds-raking-in-billions-during-coronavirus-crisis"News of the multibillion-pound windfall came as Crispin Odey, the Brexit supporter who made millions betting against the pound in the run up to the EU referendum, said his fund had made its biggest monthly gain since the financial crisis.""Odey Asset Management declined to comment on the TUC’s call for hedge fund owners to pay a “fair share” towards the fight against coronavirus. The fund made a return of 21% in March.Odey, who has an estimated £800m fortune, privately told clients that the world was facing a crisis as bad as the Great Depression in the 1930s.In a letter to investors on Thursday and reported by Bloomberg, Odey said: “This is not like 2008-9, nor 2001-2, nor even 1989-92. The fall in global gross national product for this year will echo 1931-2. That was a terrible time when countries and institutions disappeared and characters like Adolf Hitler seized their chance to take over Germany.”"

David Ainsworth ● 2405d2 Comments

21% in a month?  The man’s practically a failure. That same article mentioned one US fund making over 3000% in March.  That’s more like it!  No doubt he will be looking for government support If he fails to improve.

Jonathan Callaway ● 2405d

financial experts on bbc sky etc are forever saying "the markets hate uncertainty", this is nonsense imho. business hates uncertainty, but the financial markets equate uncertainty with volatility which equals opportunity. hedge funds are always primed to pounce on opportunity, well done to Odey. (btw the article only talks about the big profits, I have no doubt some have made big losses but that wouldnt make good press)

Adam Tripp ● 2405d