Odey blames bank 'fairy dust' for 'painful' market for bears

Supporting troubled stocks

Laura Dew
clock • 1 min read

Bearish hedge fund manager Crispin Odey has blamed banks for supporting troubled companies, foiling his short positions and contributing to poor performance.

According to Bloomberg, the manager (pictured)  blamed the financial firms for coming "to the rescue" of failing companies. In a letter to investors in his flagship European Inc fund, he said: "As a bear, this market has been so painful. Every occasion in which a company gets caught between a squeeze in margin and inability, because of competitive conditions, to pass on cost increases, banks have come to the rescue." Referencing a short position in Tullow Oil, Odey said: "Loan covenants have been waived, lease obligations relaxed, fairy dust has been applied." The manager has issue...

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