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 February-16 the EUR class returned -10.8% against the MSCI Daily TR Net Europe (EUR) return of -2.2%. ■ After currency hedging the short equity book made a negative contribution for the month (-6.3%). Positive contributions before currency hedging came from a number of positions including Coloplast (+23bps), Banco Popular Espanol (+18bps) and LafargeHolcim (+17bps). These were outweighed by the negative contributions, the most notable of which were attributable to Anglo American (-215bps), Las Vegas Sands (-45bps) and Royal Dutch Shell (-38ps). ■ The long equity book made a negative contribution after currency hedging (-5.5%). The largest positive contributions before currency hedging came from Randgold Resources (+38bps), Sibanye Gold (+35bps) and Shiseido (+27bps). These were outweighed by negative contributions, the worst of which came from Nokia (-92bps), Sky (-80bps) and Bank of America (-46bps). ■ Elsewhere, active currencies returned -0.4% while government bonds and commodities returned +0.1% and +1.4% respectively. Source for above table and chart: Quintillion Limited and Bloomberg. Calculation on a NAV basis as at 29-Feb-16. Past performance is not a reliable indicator of future performance and is shown net of fees and other charges. The data below refers to the € share class. Bull markets do not die of old age. They are murdered by central banks. How far away we are from that old adage. The last six weeks have seen yet again central banks responding to further weakness in the world economy, by lowering or at least not raising interest rates and continuing to subsidise the weakest. Wherever they see any sign of distress as with the CDS market in Europe, their response is to believe that risk premiums are unfairly rising and immediately to take action to cancel the effect. However, several years of watching central banks responding to ever falling productivity numbers by reducing interest rates have shown that they can effect asset prices with their actions, but that not only do they have almost no affect on economic activity, but they positively damage it. The reason is simple. Banks work, like everyone else, off profit margins and the lower and longer interest rates remain close to zero, the more that net interest margins shrink and the less inclined, because profits are falling, they are to coun- tenance new lending. Without credit expansion there can be no strong nominal growth of GNP global- ly. Strangely even where there is strong credit growth, nominal incomes have responded sluggishly. For this is the good news. Over the last twelve months there has been 20% more dollars created in relation to GNP in the USA than a year ago. In China there has been over 30% more renminbi created. This should have resulted in blow out growth of nominal incomes, but in fact GNP in the USA has grown by 4.5% and in China by just under 7%. In both instances private indebtedness has grown by multiples of that. That a 20% increase in dollars has only resulted in inflation of 2.1%, reveals that strange things are happening. It has not just been worrying us here, but also seems to have unnerved the Fed. On all our numbers such credit growth would have resulted in over 5 or 6 interest rate hikes by this time in the cycle. What frightens them and should frighten us all is that the overcapacity built up post 2008/9 in so many industries linked with China is now coming through in a Strategy consists of OEI, OEI Mac and Odey Swan Funds. 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 -10.8 -2.2 -8.5 3-month -0.8 -13.1 12.3 1-year -14.0 -13.4 -0.6 3-year -0.8 22.5 -23.2 5-year 8.7 31.3 -22.7 YTD -4.4 -8.2 3.9 Since Inception 1465.9 400.3 1065.7 CAGR since inception 12.3 7.0 5.3 29-Feb-2016 1-year 3-year 5-year Inc. Fund annual s.dev. 30.3 22.7 21.5 17.1 Index annual s.dev. 16.3 13.2 13.7 17.4 Alpha -1.9 0.4 0.2 0.9 Beta -1.0 -0.3 0.4 0.2 Correlation -0.6 -0.2 0.2 0.3 Sharpe Ratio -0.3 0.1 0.2 0.6 29-Feb-2016 29-Feb-2016 % Nav Long Equity 90.0 Short Equity -196.9 Foreign Exchange 182.1 Government Bond -1.5 Commodity 28.9 Inception Date Firm Size ($m) 10,962.26 Strategy Size ($m) 2,298.37 Fund Size (€m) 939.86 € Class 800.67 $ Class 371.76 £ Class 309.03 £ B Class 175.38 Index MSCI Daily TR Net Europe 29-Feb-2016 1-Jun-92
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Authorised and Regulated by the Financial Conduct Authority
Charts above shows non-base currency exposures through forward currency contracts and portfolio holdings.
29-Feb-16
29-Feb-16
29-Feb-16 29-Feb-16
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 Conduct of Business Sourcebook of the Financial Conduct Authority of the United Kingdom (the “FCA”) 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. For the avoidance of doubt, while not authorised by the FCA, the Fund is a recognised scheme pursuant to section 264 of the Financial Services and Markets
Act 2000 of the United Kingdom (the “Act”). The information and any opinions have been obtained from or are based on sources believed to be reliable, but accuracy cannot be guaranteed. The
capital you invest is at risk and you may lose some or all the money you invest. 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
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ed 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
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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.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
Past performance is not a reliable indicator of future performance and is shown net of fees and other charges. The data below refers to the € share class.