Odey’s Special Situations Fund Slashes Its Long Equity Exposure To 21 Percent

Despite the extreme market volatility, the Odey Special Situations Fund was up 1% for September, bringing its year-to-date return to -3.5%. The fund's benchmark, the MSCI World USD Index, plunged 9.3% in September and is down 25.4% year to date.

The Odey team preserved their investors' capital by selling off a long list of arbitrage positions to reduce the fund's long equity exposure to 21% to deal with an inflationary bust scenario.

Q3 2022 hedge fund letters, conferences and more

Dramatic Positioning Shift

In his September letter to investors, which was obtained by ValueWalk, Odey portfolio manager Adrian Courtenay said last month brought a shift in positioning as the fund took...