City fund guru Odey lands £48m payday after year of bumper returnsComments Off on City fund guru Odey lands £48m payday after year of bumper returns
The 55-year-old hedge fund manager — one of Britain’s best-known stock pickers — benefited as Odey Asset Management saw its profits more than treble from £55 million last year to £174.1 million for the year ending April 5.
According to documents published at Companies House, management fees were up 48% to £53.3 million and performance fees hit £143.4 million, compared to £36 million the year before.
This boosted pay at the hedge fund with the “member with the largest entitlement’ — believed to be Odey — seeing his share of the profits jump from £14.2 million to £47.8 million.
According to the results, £77.5 million of its total £198 million of income comes from the UK, followed by £84 million from the Cayman Islands and £32 million from Europe.
Like many other hedge fund managers, stock market volatility has hit Odey since the results were published and his flagship €1.8 billion (£1.4 billion) fund is down about 10% this year, according to a recent letter to investors.
The Cayman-domiciled Odey European Fund made a 5.6% loss in October with Odey putting the “disappointing performance” down to short positions taken in companies such as Fiat Chrysler and Intu Properties. Over the past five years, the fund has returned about 16.5%, making it one of the strongest performers in the industry.
Odey was catapulted into a battle with his former father-in-law, the media tycoon Rupert Murdoch, this year when he refused to accept Murdoch’s offer to buy his minority stake in Sky Deutschland as part of Sky’s £7.4 billion swoop for Sky Italia and Sky Deutschland in July.
The fund manager claimed BSkyB’s offer “significantly understates the value of the company” although he backed down in October when he agreed to sell least 97% of its shareholding in Sky Deutschland to avoid being frozen out as a minority shareholder.
The Harrow and Oxford-educated Odey qualified as a barrister but moved straight into fund management — running European pension funds at Barings and Framlington — before setting up Odey Asset Management in 1991 with backers including George Soros. He made a killing predicting the financial impact of the credit crunch — shorting banks such as Bradford & Bingley. After a brief first marriage to Murdoch’s eldest daughter Prudence, he is now married to Nichola Pease, the former chief executive of JO Hambro Capital Management.