The $22m football bet: Hedge fund guru Crispin Odey shorts Manchester United shares

Hedge fund guru Crispin Odey has made a $22million bet that Manchester United’s poor performance on the field will be echoed in the stock market.



The founder of Odey Asset Management has taken out a 0.78 per cent ‘short position’ on the club, signalling his belief that its shares will fall.



A short position is when an investor borrows stock in the expectation that it will lose value, then sells it immediately. If and when the price drops, they buy the shares back and pocket the difference.

Fools gold...or sharp money? Hedge fund star Crispin Odey has placed a £22m short bet on Manchester United shares sliding as the club struggles for form.

Odey’s short position is worth $21.8million or £13.3million, about two thirds of what Manchester United initially paid to land star striker Robin van Persie from Arsenal.



The hedge fund manager’s gamble pits him against renowned financier George Soros, who owns 2.1million shares in Manchester United, worth some $35.7million or £22million at yesterday’s price of just over $17.



Odey’s view is particularly poignant given that he has been compared to former Manchester United and England winger David Beckham.



He and wife Nichola Pease have been referred to as the ‘Posh and Becks of finance’, due to their status as a glamorous power couple among investment managers.

Hedge fund guru: Crispin Odey is the founder of Odey Asset Management

The short position means that about 1.58 per cent of Manchester United’s shares are now out on loan to hedge funds betting on a slump.



Tremblant Capital has shorted a further 0.8 per cent of the stock, believing that its 22 per cent rise so far this year cannot be sustained.

United floated on the stock market in New York in August 2012 at $14 a share – valuing the club at £1.4bn.

The listing was structured to leave the Glazer family firmly in control after they bought the club in 2005 for £760m.A vocal section of fans complain that they have left United saddled with debt.

The club claimed the Premier League title last year but manager Sir Alex Ferguson finally retired with former Everton boss David Moyes chosen to succeed him. Man Utd have struggled by their high standards in the early part of this season and currently sit ninth in the league table - 13 points off leaders Arsenal.