Crispin Odey has made even more money out of his bets on movements in the pound after his fund switched from being a seller to a buyer.
Having seen the value of his Odey European hedge fund soar on short bets against sterling and UK government bonds, it has now benefited handsomely from the recent rally in the pound.
According to Bloomberg, the fund's value has risen 193% over the past 12 months compared to a gain of 140% prior to Kwasi Kwarteng’s mini-budget on 23 September that prompted chaos in UK bond markets.
According to ITV’s Robert Peston, Odey has now made a packet out of the recovery in sterling following the Bank of England’s intervention last week to halt the slide in UK government debt.
Since then, the value of sterling against the dollar has risen to US$1.14 from US$1.03 at its low point.
Peston tweeted that Odey had reversed his short position when Kwarteng became chancellor after Liz Truss won the race to become PM.
Kwarteng worked for Odey’s asset management firm before he moved into politics and Labour has called for an investigation into a private lunch he had with Crispin Odey in July.
The two discussed political “gossip”, Odey has said but Labour backbenchers want the meetings to be investigated by a Parliamentary committee.
Odey, which was a strong supporter of Brexit during the 2016 referendum, said Remainers were behind the rout.
“This [bond chaos] was easy to see from miles away and didn't depend on Kwasi coming into government or anything else.”