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 December-15 the EUR class returned +3.7% against an MSCI Daily TR Net Europe (EUR) return of -5.3%. ■ After currency hedging the short equity book made a positive contribution for the month (+4.6%). Positive contributions before currency hedging came from a number of positions including Seadrill (+92bps), Anglo American (+59bps) and Coca-Cola (+44bps). These outweighed the negative contributions, the most notable of which were attributable to Advanced Micro Devices (-26bps), Berkeley Group (-24bps) and Netflix (-20bps). ■ The long equity book made a negative contribution after currency hedging (-0.4%). The largest positive contributions before currency hedging came from Man Group (+20bps), Dixons Carphone (+6bps) and Circassia Pharmaceuticals (+6bps). These were outweighed by negative contributions, the worst of which came from Sky (-54bps), Sports Direct (-47bps) and Alcatel-Lucent (-16bps). ■ Elsewhere, active currencies returned -0.6% with government bonds, commodities and index futures returning -0.3%, +0.4% and +0.3% respectively. Source for above table and chart: Quintillion Limited and Bloomberg. Calculation on a NAV basis as at 31-Dec-15. Past performance is not a reliable indicator of future performance and is shown net of fees. The data below refers to the € share class. Is this a bump in the road, or something more serious? The old adage was that if the market had a problem, you sold the market and bought the problem. The market could only go up if the problem was solved and you made the most money from the solving of the problem. Governments have rather turned that on its head. Ever since Greenspan bought into the S&P in 1987 and then the HKMA successfully bought 10% of the Hong Kong blue chips in 1998 in the Asian crisis, governments have seen fit to change the adage to ‘if the market’s got a problem, buy the market!’ We are now watching this being performed on a larger screen and entirely in the public eye. The Chinese authorities are buying everything. Their problem is that there is no one problem. They have: ■ A bubble in housing ■ A bubble in lending and the banking sector ■ A bubble in currency ■ A bubble in the stockmarket ■ Hidden unemployment which threatens social unrest At one stage the Chinese stockmarket represented 12% of global market capitali- sations. Its debt is around 23% of all outstanding global debt. With China now so integrated into the world trading system, what happens there, is felt by all. The growth that Xi Jinping so enjoyed was created by wage growth of 12%, quite unconnected to productivity, and now they are being forced to swallow the con- sequences of allowing the cost of labour to rise so much faster than their pegged currency partner, the US. Strategy consists of OEI, OEI Mac and Odey Swan Funds. Inception Date Firm Size ($) 11,594.05 Strategy ($m) 2,444.56 Fund Size (€m) 1,064.36 € Class 837.15 $ Class 387.15 £ Class 322.51 £ B Class 183.03 Index MSCI Daily TR Net Europe 31-Dec-2015 1-Jun-92 Since Inception 0 500 1000 1500 2000 2500 Jun-92 Jun-96 Jun-00 Jun-04 Jun-08 Jun-12 % Odey European Inc(€) MSCI Daily TR Net Europe € Fund MSCI Daily TR Net Europe Rel. 1-month 3.7 -5.3 9.0 3-month -12.2 5.3 -17.5 1-year -12.8 8.2 -21.0 3-year 15.6 38.6 -22.9 5-year 20.1 49.0 -28.9 YTD -12.8 8.2 -21.0 Since Inception 1537.3 445.2 1092.1 CAGR since inception 12.6 7.5 5.1 31-Dec-2015 1-year 3-year 5-year Inc. Fund annual s.dev. 28.4 22.0 20.7 17.0 Index annual s.dev. 18.1 12.5 13.4 17.4 Alpha -0.2 0.8 0.2 1.0 Beta -0.7 -0.2 0.4 0.3 Correlation -0.5 -0.1 0.3 0.3 Sharpe Ratio -0.3 0.3 0.3 0.6 Fund Info Ratio -0.5 -0.2 -0.2 0.2 Fund Tracking error 40.4 26.7 21.7 21.1 Treynor 18.0 -20.8 8.3 39.6 31-Dec-2015 31-Dec-2015 % Nav Long Equity 87.9 Short Equity -124.6 Foreign Exchange 102.0 Government Bond -6.9 Commodity 2.2
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Authorised and Regulated by the Financial Conduct Authority
Charts above shows non-base currency exposures through forward currency contracts
31-Dec-15
31-Dec-15
31-Dec-15 31-Dec-15
Comparative benchmark Primary: Cash, Secondary: MSCI Daily TR Net Europe (€)
Fund inception date 1 June, 1992 Fund type Cayman Long-Short OEIC Listing Irish Stock Exchange
Base currency € Share classes €, £ (A & B), $ Hedging Non-base currencies are unhedged
Dealing 1st /15th of each month based on funds received the previous day forward to 5pm Dublin time / COB 14th & month end Front end fee Up to 5% Annual management fee 1%
Performance fee 20% of the increase in the value per share of the fund between the beginning and the end of the year. Fees crystalise annually. Losses carried forward. Anti-dilution fee 0.5% NAV on subs/reds Exit fee 1% if held <1yr
Min. investment €1,000,000 or £/$ equivalent Dividends Reporting & accumulation Price reporting Prices published daily in FT
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.
The investment objective of the Fund is capital appreciation. The Investment Manager seeks to achieve this objective principally through managing a portfolio of securities, bonds and currencies and related financial instruments. The Investment Manager expects that the Fund's investments will tend, over time, to be weighted towards European
securities with investments in non-European securities subject to the limits set out in the Investment Objective and Policy section of the prospectus.
Past performance is not a reliable indicator of future performance and is shown net of fees.
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