Crispin Odey’s Odey Asset Management made some bold moves in the third quarter, choosing to drop huge sums in financial stocks. The $7 billion hedge fund has returned -14% YTD in 2011 (through October 28). Odey bought positions in Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM).
…Crispin Odey’s new financial positions may be bold moves, but the investor really seems to know his stuff in that industry. In 2009 Odey’s European fund rose 32% after he bought positions in the Royal Bank of Scotland (RBS) and Barclays (BCS). Odey’s largest bets are in financials, but he also had large positions in non-financial stocks like Monsanto (MON), Microsoft (MSFT), Intel (INTC), eBay (EBAY), and Disney (DIS). We agree with Odey that financials and technology stocks are undervalued compared to the rest of the market. It is interesting that Odey had only $5 million invested in Bank of America (BAC), whereas his investments in WFC, C, and JPM total more than $350 million.
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