By Nell Mackenzie
LONDON (Reuters) -Freddie Neave, the hedge fund manager who replaced Crispin Odey to take charge of Odey Asset Management's European Inc. fund, has dropped the firm's short position on UK gilts, an investor letter seen by Reuters showed.
The Odey European fund that overseas 248 million euros ($273.47 million) in assets, was down 15.6% for the year as of July 31, the letter dated Aug. 8, said.
Crispin Odey, one of Britain's best-known hedge fund managers, reaped millions of pounds in 2022 by wagering against British government bonds, also known as gilts.
His firm ended that year up 151.46%, and was the top fund tracked by HSBC (LON:HSBA)'s Alternative Investment Group data in 2022.
"Government bond exposure has been taken to zero," the letter signed by Neave said.
"This can give investors comfort that the exposures they face over the coming weeks are materially lower than in the ordinary course of business," it added.
Odey Asset Management (OAM) did not immediately respond to a request for comment.
Its once flagship European fund has been stripped down to mainly long and short stock positions and a small portion of foreign exchange and corporate bond exposure, the letter showed.
Odey European Inc still held the UK government bond positions in June, a separate letter seen by Reuters showed.
Odey, 64, was ousted in June from OAM, which he founded in 1991, after the Financial Times and Tortoise Media reported that 13 women had alleged he had sexually assaulted or harassed them.
Odey has denied the allegations.
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