In His Latest Letter, Odey Refuses To Throw In The Towel

With his fund down ~50% YTD, one wonders if Crispin Odey should be thinking about quietly exiting stage left after along and mostly illustrious career. However, as his latest letter suggests, Odey is just getting his second, or maybe third, wind and is confident that he will ultimately win the war against central bankers, although as he himself points out, the risk is not so much his own fund blowing up as much as LPs saying enough to active investing altogether, and cautioned that “skilled investors are being driven out by mindless (passive) investing.”
Putting it mildly (especially for his own fund), Odey said that ‘this has been a difficult year for active managers,’ and added that ‘passive investing has taken money which typically would have been in the bond market and deposited it in the equity market.’
While it remains to be seen if active management is on the endangered list, Odey has bigger troubles with his own LPs in the coming weeks, although his fortune may change in 2017 when as he warns, ‘central bankers will have to respond to what their governments are doing fiscally, rather than bolstering asset prices with low interest rates. There could be trouble ahead.’
There could, indeed, which simply means the cycle starts from scratch and central banks LBO even more of the global capital markets, until the 0.01% own all the assets while the rest “own” the debt.
His full November letter below:

This post was published at Zero Hedge on Dec 23, 2016.