Odey Wealth is the private client division of Odey Asset Management, a leading London and Channel Islands’ investment firm managing assets on behalf of institutional investors, charities, private family offices and individual investors across Global & European strategies.
Odey Wealth – Private Wealth Investing
Odey Wealth Management (C.I.) Ltd was launched in 2008 by Geoff Marson and Shaun Le Messurier to deliver portfolio management services in addition to our investment funds for private clients based offshore. It works closely with Odey Wealth Management (UK) Ltd which is led by Richard Neville-Rolfe, and together form an established business with c. $1bn under management.
With offices both in London and the Channel Islands, Odey Wealth combines Odey’s proven stock selection skills with the portfolio construction expertise of our team in Guernsey to provide private client friendly solutions for our clients. Our portfolios are tailored to each individual’s tolerance for risk and ambition for return.
Our private client portfolios range from fully segregated mandates such as the one we manage for the States of Guernsey, to portfolios invested directly in or tailored around the Odey Opportunity Fund, our flagship strategy that is managed by Geoff. Launched in 2008, the strategy established its reputation in the throes of the GFC.
With an equal emphasis between capital growth and preservation of capital, Odey Wealth has an exceptional record using original and often contrarian research to construct portfolios tailored to each private clients’ investment requirements.
Odey Wealth – An Active and Dynamic Investment Approach
Our central belief is that asset allocation is the primary driver of portfolio returns. Many investment managers share this belief, but few have the courage of their convictions and most will maintain a portfolio asset allocation that is close to a benchmark. Odey Wealth’s unconstrained approach gives it ability to shift the portfolio quickly and with conviction towards one scenario or another.
We believe that investors should pay a manager to make difficult decisions on their behalf. As this is especially true of asset allocation decisions, considerable time and effort is devoted to identifying the major themes and trends with financial markets and portfolios are positioned accordingly, with multiple outcomes factored into portfolio positioning to protect against downside risk.
Drivers of Returns – Disciplined Process and Risk Management
We consider risk-adjusted returns to be one of the central tenets for evaluating suitability and performance. Our track record of outstanding risk-adjusted and absolute returns is a function of both a robust, tried and tested process and rigorous risk controls. Our risk committee, headed by Shaun Le Messurier, works to ensure that the Odey Opportunity Strategy’s risk levels are appropriate at any given time.
The process supporting the investment decisions of the Odey Opportunity Strategy is underpinned by ongoing and disciplined analysis of four main factors: Fundamentals and Valuation (medium to longer-term) alongside Sentiment and Technical Analysis (shorter-term).
- To assess macroeconomic Fundamentals, we bring to the fore our in-house and third-party research, along with a number of proprietary tools to help validate or challenge our working thesis. Examples of the chief inputs into this analysis include GDP growth, inflation, interest rates, corporate earnings, Central Bank policy and the political environment.
- There is an understanding that the greatest returns are made from investing ahead of the crowd, so the emphasis of our research is to identify themes ahead of the market and to overweight those ideas with the most upside potential based on Valuation. Understanding what the market is discounting is also important in building a margin of safety into any of the investment themes we undertake and is an important measure of the degree of conviction we put behind them.
- Whilst Sentiment is often a reverse indicator, this is informed by various surveys to gauge optimism and investor positioning. This analysis can be particularly useful at the extremes, as they often presage turning points in market direction.
- Technical Analysis can serve as a useful confirmatory “tap on the shoulder” for our fundamental analysis, but equally can be used to identify potential turning points in financial markets. We use a number of classic tools such as moving averages, relative strength indices and trend following indicators. Simply put, our aim is to identify the established trends driving fixed-income, equity and currency markets and to ascertain if those remain intact or have broken down. Cross correlation between markets is also important as confirmation of trend moves or changes across different asset classes is an important driver of conviction.
The Odey Opportunity Fund Euro monthly reports are now available below. For other share classes GBP, CHF or USD just ask!