FTSE 100: 7364.56 ▼ -60.84 (-0.82%)
Crispin Odey has reportedly amassed a £232 million bet against on gilts, larger than the entire value of his €173 million (£151 million) Odey European fund.
The manager’s leveraged 'short' on gilts has become the largest position in the Cayman Islands-based hedge fund, according to documents seen by the Financial Times.
The sudden return of volatility since February has rescued Odey from an extended period of underperformance, as big bearish bets consistently lost money in climbing markets.
Benchmark 10-year gilt yields, which move in the opposite direction to prices, climbed from just 1.1% at the end of last year to a four-year high of 1.6% in February before dropping back to 1.4%.
The European fund returned 8% in February alone, according to Reuters.
In a presentation last year Odey noted: ‘In the UK where, after all, we have had a central bank who have, basically, carried on doing quantitative easing into uncertainty of Brexit and, of course, what they are now faced with is encouraging individuals to save even less and to borrow.'