When the markets have you down, like they do for hedge fund manager Crispin Odey, whose main fund has lost 25.5% so far this year, it can feel like the whole world is against you. Like you're out there, every day, getting your ass kicked. Like you're fighting not just for profits but for your life. At times like these, when talking to the press or writing letters to investors, some people might dial back or even entirely cut out analogies to fighting in an actual war, even if they swear they can feel the helmet on their head or see the enemy in the distance. Crispin Odey is not one of these people.
Markets need equilibrium to prosper. When the authorities have a problem, markets have a problem. We have been hurt by this rally in China-related companies, and indeed we reduced the gross and net positioning of the fund significantly in mid-March, to help reduce the short term volatility of the fund, but we remain convinced that China is in many ways in an even greater bind over policy than the developed world. By mid-March the fund was rising and falling by over 5% per day. At which point this was no longer an investment market but a battlefield.