British hedge fund manager Crispin Odey recorded his best year yet after his fund's gains surged by 193 per cent amid tumultuous markets last month.
His hedge fund soared about 25 per cent in September after benefiting from his long-running short bets against UK government bonds and pound amid wild volatility sparked by Prime Minister Liz Truss’s plans to enact large-scale tax cuts.
The surge boosted his year-to-date gains to 193 per cent, according to a source, Bloomberg said.
His previous best yearly performance was almost three decades ago, when he returned 60 per cent in 1993.
He previously employed Kwasi Kwarteng, Britain's new chancellor, as an analyst before he became an MP.
On Monday, Mr Kwarteng announced that the UK government has a plan to “get Britain moving” in a speech to Conservatives aimed at restoring his authority, hours after backtracking on a key proposal to cut taxes for the country's highest earners.
Mr Odey's fund’s short exposure to bond trades was worth about 111 per cent of its net asset value going into September, mostly related to two UK government securities maturing in 2050 and 2061, according to a separate investor note seen by Bloomberg.
A spokesman for the London-based Odey Asset Management declined to comment.
The government’s plans for unfunded tax cuts caused a rush out of UK government bonds and forced the Bank of England to intervene to calm markets.
Mr Odey’s on-and-off wager against the pound has attracted criticism on social media and in political circles.
Some see the trade as an attempt by the famed money manager to profit from the UK’s economic woes after Brexit.