Odey backs UBS following Credit Suisse rescue

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Crispin Odey has taken a bullish view on Swiss bank UBS Group's controversial rescue of stricken rival Credit Suisse Group by investing 2% of Odey Asset Management funds in UBS shares, according to a report by Bloomberg.

And the London-based hedge fund manager, who personally ran about $1.3 billion in assets at the end of February, believes that there was a case for making an even bigger investment, given what he says is a disparity between UBS Group's market value and the increase in net asset value from the deal. Bloomberg reports Odey as saying in a telephone conversation that he "probably should have put 5% in".

UBS shares were down by as much as 16% on Monday following the last-minute deal which saw Credit Suisse acquired for around $3 billion, but have since recovered and are trading above levels seen at the start of the week.

Odey’s flagship European Inc hedge fund returned a bumper 152% last year, on the back of winning highly-leveraged short bets on long-dated government bonds.

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