12 Upper Grosvenor Street, London, W1K 2ND ~ Tel +44 (20) 7208-1400 Fax: +44 (20) 7208-1401 ~ www.odey.com
Authorised and Regulated by the Financial Conduct Authority
■ In October-15 the Fund returned +2.8% against the MSCI Daily
TR Net World return of +5.9%.
■ Positive performance primarily came from our holdings in the
Consumer Discretionary (+1.2%), Financials (+0.6%) and
Information Technology (+0.5%) sectors.
■ Individual best performers this month were Sky (+0.7%) and
Alcatel-Lucent (+0.4%); the worst were Sports Direct
International (-0.2%) and Royal KPN (-0.1%).
Note: Allocation and attribution figures are taken at close of business and fund performance is taken at 12pm.
Source for above table and chart: Capita Financial Managers
& Bloomberg. Past performance is not a reliable indicator of
future results and is shown net of fees. Calculation on a NAV basis as at 30-Oct-15.The data below refers to the £ R share
class.
Stan Druckenmiller stunned investors in New York recently by announcing that
he thought we were already in a bear market for equities. I suspect people will
look back on this time and see it as the last opportunity to get out. Remember, as
Warren Buffett has commented, there is a world of difference between volatility
and loss. Volatility can be the cost of getting into position, a loss in pursuit of a
greater profit. Loss is when the hope of recovery has gone. A properly mistaken
investment.
Since 2009, and in practice long before then, we have been living in a world
where capacity has not been taken out in any industry. Zero interest rates have
allowed lenders to be at their most sentimental – forever hoping that their losses
will not be realised. Given the boom before 2009, when we look back on the
years since the start of zero interest rates, we may be surprised only by how slow
the Developed World was to misallocate capital resources, rather than by how
much they did. After all, having no cost of capital is like living in a room with no
light. Furniture gets pushed about.
However, China has both massively misallocated capital, misallocating lending to
cover up that misallocation, and has promoted wage growth to cover up for the
lack of demand for excess housing. At some point it will have to let its currency
fall. Presently every day, thanks to wage inflation of 10%, its competitive
position viz-a-viz all its neighbours gets worse. The reaction to the slowdown is
to put yet more money into capital spending; government spending is now rising
at 18% yoy and not 8%, as it was 3 months ago. But throwing good money after
bad does not solve this problem. What it does show, is enough strength in the
global economy for Yellen and the Fed to raise interest rates, and with it the
dollar and the RMB rise yet further against their neighbours’ currencies.
Do not buy until capacity is taken out of the system. Selling is precarious but the
real losses are the ones you never come back from.
£ Class 3713.31
£ A Acc Class 132.24
£ I Acc Class 170.74
£ I Inc Class 167.17
Fund Size (£m) 395.49
Inception Date
Index MSCI Daily TR Net World
30-Oct -2015
06-Aug-01
Since Incept ion
0
100
200
300
400
500
Aug-01 Aug-04 Aug-07 Aug-10 Aug-13
%
CF Odey Opus(£)R
MSCI Daily TR Net World
£ FundMSCI Daily TR
Net WorldRel.
1-month 2.8 5.9 -3.1
3-month -3.6 -1.9 -1.7
1-year 6.0 5.5 0.5
3-year 40.9 45.1 -4.2
5-year 45.3 61.0 -15.7
YTD -1.6 2.4 -4.0
1yr to 30-Oct-2015 6.0 5.5 0.5
1yr to 31-Oct-2014 -0.9 9.1 -10.0
1yr to 31-Oct-2013 34.1 26.1 8.0
1yr to 31-Oct-2012 5.6 9.1 -3.5
1yr to 31-Oct-2011 -2.3 1.7 -4.0
Since Inception 271.3 93.1 178.3
CAGR since inception 9.7 4.7 4.9
30-Oct -2015
1-year 3-year 5-year Inc.
Fund annual s.dev. 11.1 12.0 14.7 16.2
Index annual s.dev. 10.3 9.8 10.3 15.7
Alpha 0.1 0.1 -0.2 0.5
Beta 0.9 1.0 1.2 0.8
Correlation 0.9 0.9 0.9 0.8
Sharpe Ratio 0.3 1.0 0.5 0.5
Fund Info Ratio 0.2 0.1 -0.2 0.5
Fund Tracking error 6.0 6.3 7.6 11.2
Treynor 2.6 10.8 5.7 8.7
30-Oct -2015
30-Oct -2015
% Nav
Equity 60.3
Cash 39.7
12 Upper Grosvenor Street, London, W1K 2ND ~ Tel +44 (20) 7208-1400 Fax: +44 (20) 7208-1401 ~ www.odey.com
Authorised and Regulated by the Financial Conduct Authority
The investment objective of the CF Odey Opus Fund is to achieve long term capital growth primarily through
investment in quoted equity and fixed interest stocks
throughout the world.
Comparative benchmark MSCI Daily TR Net World Index
Fund inception date 6 August, 2001
Fund type UK Long only UCITS IV
Base currency £
Share classes £R, £I (Acc. & Inc.), £A
Hedging Non-base currencies are unhedged
Dealing / Valuation Daily forward to 12pm / 12pm
Front end fee Up to 5%
Annual management fee R 1.39%, I 0.89%, A 1.64%
Anti-dilution fee May apply 0.75% to NAV on subs/reds
Min. investment ‘I’ £1,000,000, ‘R’ & ‘A’ £5,000
Dividends Income and Accumulation share classes available
Authorised Corporate Director (ACD) Capita Financial Managers Ltd
Depositary BNY Mellon Trust & Depositary (UK) Ltd.
Auditor Ernst and Young LLP
Price reporting Prices published daily in Financial Times
ISIN ‘R’ GB00B1JMNF99 ’I’ Acc GB00B54RK123,
‘I’ Inc GB00B717BM70, ‘A’ GB00B87YPX87
SEDOL ‘R’ B1JMNF9, ‘I’ Acc B54RK12 , ‘I’ Inc B717BM7,
‘A’ B87YPX8
This communication is for information purposes only and not intended to be viewed as a piece of independent investment research.
© 2015 Odey Asset Management LLP (“OAM”) has approved this communication which is for private circulation only, and in the UK is directed to persons who are professional clients or eligible
counterparties for the purposes of the FCA’s Conduct of Business Sourcebook and it is not intended for and must not be distributed to retail clients. It does not constitute an offer to sell or an
invitation to buy or invest in any of the securities or funds mentioned herein and it does not constitute a personal recommendation or investment taxation or any other advice. The information and
any opinions have been obtained from or are based on sources believed to be reliable, but accuracy cannot be guaranteed. Past performance does not guarantee future results and the value of all
investments and the income derived therefrom can decrease as well as increase. Investments that have an exposure to currencies other than the base currency of the fund may be subject to exchange
rate fluctuations. This communication and the information contained therein may constitute a financial promotion for the purposes of the Financial Services and Markets Act 2000 of the United
Kingdom (the “Act”) and the rules of the FCA. This communication is not subject to any restrictions on dealing ahead. The distribution of this communication may, in some countries, be restricted by
law or regulation. Accordingly, anyone who comes into possession of this communication should inform themselves of and observe these restrictions. OAM is not liable for a breach of such
restrictions or for any losses relating to the accuracy, completeness or use of information in this communication, including any consequential loss. Please always refer to the fund’s prospectus. OAM
whose company No. is OC302585 and whose registered office is at 12 Upper Grosvenor Street, London, W1K 2ND, is authorised and regulated by the Financial Conduct Authority.
Crispin Odey Portfolio Manager
Enquiries
Andrew King
Tel: +44 20 7208-1454
Email: [email protected]
Sarah St. George
Tel: +44 20 7208-1432
30-Oct-15 30-Oct-15
30-Oct-15 30-Oct-2015
All sources unless otherwise stated are Odey internal unaudited data and refer to the £ R share class. All data shown is as at 30-Oct-2015, however, the attribution
by sector chart is for the month ending 30-Oct-2015.
Currency exposure relates to exposure of all assets held by the fund, including
any forward currency positions.
0.92.1
11.7
37.3
48.0
0
10
20
30
40
50
60
NO
K
SEK
EUR
USD
GBP
%
Rank Security Notional Exposure (%)
1 Sky 9.9
2 Alcatel-Lucent 4.8
3 Man Group 3.6
4 Sports Direct 2.8
5 Pendragon 2.7
6 D.R. Horton 2.7
7 Orange 2.2
8 Koninklijke KPN 2.2
9 Telefonaktiebolaget LM Ericsson 2.1
10 Nokia 2.0
0
10
20
30
Con
sumer
Discretio
nary
Con
sumer Staple
s
Energy
Finan
cials
Health
Care
Industrials
Inform
ation
Tech
nolo
gy
Mate
rials
Teleco
mm
unicatio
nServices
Utilities
%
Fund Index
-0.1
0.3
0.7
1.1
1.5
Consu
mer
Disc
retio
nary
Consu
mer S
taple
s
Energ
y
Fin
ancials
Health
Care
Industr
ials
Info
rmatio
nTech
nolo
gy
Mate
rials
Tele
com
munic
ation
Serv
ices
Utilitie
s
%
Fund Index