Crispin Odey's Hedge Fund to Cease Operations After January 2026

Crispin Odey’s hedge fund, a prominent UK-based investment vehicle, will cease active operations by January 31, 2026. The firm, which began trading in 2009, has reported declining assets under management, falling to $720 million by December 2025—down from a peak of $2.3 billion in 2014. The decline reflects persistent underperformance across multiple market cycles and a growing exodus of institutional and high-net-worth investors. The firm's core strategy, centered on macroeconomic bets and short positions in equities, failed to adapt effectively to shifting market dynamics post-2020. From 2021 to 2025, the fund posted negative returns in four out of five years, with a cumulative loss of 38% over that period. These results led to a 65% reduction in total capital inflows since 2021, as investors sought more consistent performance from alternative managers. The winding-down process will involve the orderly liquidation of all positions, repayment of investor capital, and the phase-out of staff. A senior executive confirmed that 85% of the fund’s 32-person team will be retained through March 2026 to manage the closure. Former clients and industry observers note that the closure underscores the challenges faced by long-standing hedge funds attempting to maintain relevance amid evolving market conditions and increased competition. The end of the Odey fund signals a broader trend in the hedge fund industry, where 14% of funds launched before 2010 have closed since 2020. The move affects not only investors who had exposure to the fund but also financial institutions that served as prime brokers and custodians, which will need to reallocate capital and adjust reporting frameworks during the closure.