Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL): Odey Asset Management Scores Big on Swatch Short as it Bets on iWatch

We reported back in November that Crispin Odey’s Odey Asset Management was in the midst of a rough fiscal 2015. As of the end of October, the London-based, Cayman-domiciled hedge fund had reported losses of 10.3% to investors, despite briefly reversing their early-year losses during a productive summer. That after coming off a record fiscal 2014, when the fund earned $271 million, tripling their profits from the previous year, and raised their assets under management to $12.4 billion from $8.3 billion.

Crispin Odey

All was not yet lost for the year however, and Odey ended up closing out the final two months of 2014 on a high note, and has carried that success into 2015. The fund, founded in 1991, and with an emphasis on long-short strategies, recently scored big on their short position against The Swatch Group SA.

The Swiss watchmaker has plummeted 20% since January 15, when the Swiss National Bank (SNB) announced they would no longer keep the Swiss Franc trading at artificially low levels. The currency almost immediately shot up 20% in value, dealing a massive blow to Swiss exporters and their stocks. Swatch announced just days later that they would be forced to raise the prices on some of their brands by 10% as a result. The SNB’s decision was a pleasantly unexpected surprise for Odey, whose short position in the stock was based on existing weaknesses they saw in the company’s prospects.

As discussed during their most recent quarterly presentation, the impending release of Apple Inc. (NASDAQ:AAPL)’s iWatch, as well as dwindling sales in China due to that government’s stronger anti-graft policies, both posed a serious threat to Swatch’s success. Odey had already experienced strong returns from their Swatch short throughout the second half of 2014, as the stock fell from $535.50 to $440.20. It is now down to $360.30 in Tuesday trading, down over 33% since June 30.

A fund on the opposite end of the Swatch spectrum was Tom Russo’s Gardner Russo & Gardner. The fund, which emphasizes investments in companies with strong global brands (like Swatch) which have the potential for expansion into emerging markets (like China), saw their Swatch holding of over 60,000 shares as of September 30 tumble in value. They added a moderate amount of Swatch shares to their portfolio during that quarter, raising their holding in the company by 3%.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.