Crispin Odey Bullish On US, EU; Builds Massive JGB Short Position

The Odey European Fund, with close to $2.5 billion under management, delivered 4.6% performance in February while building a significant short position in Japanese ten year bonds.

“Sometimes things suddenly appear very clear,” wrote Crispin Odey, the fund’s namesake and portfolio manager, in an investor letter.  Saying that he sees two currency zones, one “Euro zone” and another “dollar” zone that incorporates the emerging markets.

Two zones

“In these systems, the economy in the best shape is Germany inside the Euro zone and the USA inside the US dollar...