Odey's flagship European hedge fund down 16-17% this year

Crispin Odey has admitted his flagship European hedge fund lost 8.3% last month.

In a letter to clients seen by City AM, Odey Asset Management reported the European fund had been hit after some of its long positions, including Sky Deutschland, performed poorly. This contributed to an overall loss for the fund over the year so far  of 16-17%.

Odey Asset Management made millions during the financial crisis by shorting stricken City banks.

Other funds run by the firm have seen better performance recently, including James Hanbury's Absolute Return fund and Michele Ragazzi's Giano Capital fund, both up by 4-5% this year, City AM reports.

Odey's losses follow admissions by other high profile hedge fund managers they have been caught out by the recent bouts of volatility.

US hedge fund manager John Paulson, founder of Paulson & Co, recently warned of mass redemptions at his Advantage Plus fund, Investment Week reported last week. While Man Group revealed its flagship computer vehicle had been caught out by a recent equities rally and bond sell-off.

The average equity hedge fund lost 5.65% of its value in September and is down nearly 10% this year, according to Hedge Fund Research.