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Audacious Aussie Bet Gone Wrong Sinks Odey In April
In March, billionaire hedge fund manager Crispin Odey said we all have “grandstand seats for an imminent market shock.” As it turns out, a “shock” was indeed “imminent” for Odey but unfortunately, he ended up on the field of play rather than observing from the bleachers. As FT reports, a leveraged bet against the Australian dollar that had been working well cost the London-based manager dearly in April. Here’s more:
Odey Asset Management founder Crispin Odey’s flagship hedge fund slumped 19.3 per cent last month, after it was caught out when the Australian dollar strengthened against the US dollar.
The large one-month move, from one of London’s best-known hedge fund managers, wiped out Odey European’s small gain in the first three months of the year and took its 2015 performance to -18.2 per cent, according to investor documents.
The €2.33bn fund has built up a short position in the Australian dollar against a long position in the US dollar, which drove monthly gains of 4.6 per cent in March. However, since the end of March the Australian dollar has gained against the US dollar.
Odey’s currency position is leveraged, which magnified the losses.
This week, the Reserve Bank of Australia reduced its cash rate by 25 basis points to 2 per cent. But the Australian dollar rose even higher against the US dollar, following weaker economic data from the US.
Ironically, Odey can take comfort in the fact that at least one of the central bankers who he believes won't be able to "pull a rabbit out of a hat" or otherwise extricate the world from an inevitable downturn, thinks his position on AUDUSD is generally the right way to bet:
RBA governor Glenn Stevens predicted that the Australian dollar was likely to weaken in the medium term, as part of a wider trend.
“The Australian dollar has declined noticeably against a rising US dollar over the past year, although less so against a basket of currencies,” he said. “Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.”

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Mess with the best, die like the rest.
- Dade Murphy / Hackers
Regular, or extra Crispin?
Stunning video showing LIVE FX charts after release of today's NFP report: https://youtu.be/CnFIr9hruMs
Only real professional can trade this and make huge money in the process.
He's a fool; it was obvious the dollar rally was long in the tooth and the currencies of the producing countries were going to rebound; how do these idiots become fund managers ? I'm currently making money on the Ruble, Long; and already took profit on the Canadian Dollar Long; all this was very obvious. what a nitwit.
HE PROBABLY DOES HIS TRADES FROM LAS VEGAS
Don't count the Ausies out they know how to make cash in the globalist game
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It's a damn good thing he has that two to fall back on or he might be eating at McCrappies. At least his clients won't have to worry about paying that twenty..... they have that going for them.
Very comforting when your arse is bleeding,I'm sure.
Step up to the craps table, put your money down and throw the dice. Smart and rich is no advantage except on Wall St. and they play with loaded dice there.....
well he still gets 2% of what's left of aum even if he doesn't get his twenty percent of the profits so don't cry for him.
Odey also got double whammied by the Bund blowup, and all the f/x hedges covering long $usd positions vs euro. I do think the $aud is going to start heading lower though.
The daily chart (aud/usd)is certainly starting to look a bit extended. I covered my longs earlier.
As far as I'm concerned, anybody who has joobuck confetti wealth at risk because they're too goddamned fucking blind to acknowledge that the jews control the entire system, (whether or not that was predicated on some ill conceived 'guilt' that was hoisted upon them which lured them in to a dumb ass desire to be POLITICALLY CORRECT), deserves to lose their whole wad.
For the past 300 years, it's all a fucking '3 CARD MONTY' game with jews on the other side of the table.
PLAY.AT.YOUR.OWN.RISK
https://www.youtube.com/watch?v=CNjarvV-bhA
I was expecting a youtube doc on the Jews but instead I got black guys in lycra
consider yourself fortunate
he can still make it back if he bets against the Fed in September...
not true. he was right about the bank of australia decision but it blew up in his face anyway.
someone else sniffed him out or just bad juju?
he is a race horse with blinders on. lots of moving parts to currency pairs.
in the end it's all OPM
My oh my, a hedge fund aneurysm that popped - WHO would have thunk it?...
Call the Fed to plug it, wrap it up and shove it up the publics arse! Sorry, just realised it ain't City, the Squid or JPM!
"Imminent Market Shock"
"This Shorting Opportunity Is As Great As 2007-2009"
"Equities Will Be Devastated"
LOL Yet another ZH fav gets his head handed to him.
This just demonstrates how tough it is to add value by trying to actively manage a portfolio in a centrally planned world, oustide of just front running government's next move.
And how is he different from other Rogue Traders who have been imprisoned for their crimes?
This is what a non-existent interest rate does to investors.....makes them take bigger risks and bigger losses.