Odey fund cashes in on Deliveroo flop as the hedge fund industry circles the takeaway delivery firm
Odey Asset Management is betting against Deliveroo as the hedge fund industry circles the under-pressure takeaway delivery firm.
The Mayfair-based fund took a ‘short’ position on the day of the float, or initial public offering (IPO), meaning it would profit if shares fell.
In what has been dubbed ‘the worst IPO in London’s history’, Deliveroo shares crashed by 30 per cent as investors turned their back on the business.
The Mayfair-based Odey Asset Management fund took a so-called ‘short’ position on the day of the float, or initial public offering (IPO), meaning it would profit if shares fell
Odey has not revealed why the position was taken, but confidence in Deliveroo was shredded before the float after big investors pulled out amid concerns about a high valuation, corporate governance and a gig economy business model.
Deliveroo took another hit last week when it was warned that sales could slow once lockdowns ease and people return to restaurants and bars.
Shares are now down by around 40 per cent from their listing price of 390p.
Odey Asset Management was founded by Crispin Odey in 1991, but he stepped down last November after he was charged with indecent assault.
Odey was alleged to have lunged at a junior female banker, then in her mid-20s, after inviting her to his house in Chelsea in 1998.
He was cleared of the charge last month.