from Funds Hub:

No defence

Sheltering from the credit crisis in so-called defensive stocks could prove a disappointment to investors and a great opportunity for short-sellers, according to Liontrust hedge fund manager James Inglis-Jones.

rtr226iq2Inglis-Jones, who runs a hedge fund for Liontrust and who recently took on the First Income fund after the departure of star manager Jeremy Lang, has short positions in sectors such as tobacco and pharmaceuticals and has recently added more.

"It's an interesting opportunity when something is seen as safe," he told me. "When the company delivers a disappointment the payoff can be pretty good."

In February Hedge Hub reported Crispin Odey saying defensives were becoming "interesting shorts" and that he "certainly wouldn't own them".

However, with markets having bounced so much recently -- the FTSE 100 is up by a quarter since March -- and many defensives having missed out on most of the rally, are defensives still expensive or do they offer better relative value now?

from Funds Hub:

Relocation, relocation

It would appear that where to live is the hot topic for hedge fund managers at the moment.


Star manager Crispin Odey of Odey Asset Management is "seriously considering leaving" the UK over higher taxes, the Sunday Times reported, while Krom River moved to Zug from London for lower tax and a better lifestyle, the Financial Times reported last year.

But there is traffic into London too.

Last month Hedge Hub reported that Auckland-based 36 South's founder Jerry Haworth was moving to London to be closer to investors, who are now keen to do as much due diligence as possible in the wake of the Madoff fraud -- but are not always able to fly to New Zealand.

from Funds Hub:

Odey spies ‘the death of safety’

By Simon Falush


So you thought safe-haven pharmaceuticals and food producers were a safe place to shelter your assets?


rtx923rThink again, says Crispin Odey, the well-known hedge fund manager who thrives on a contrarian approach to equity investing. He tells Reuters that defensives could be the next target for short sellers.


"I certainly wouldn't own them and they look like they're becoming interesting shorts. It's an interesting bit of the market that people aren't looking at."