Crispin Odey Starts Car Phone Warehouse Position ~ market folly

Tuesday, February 5, 2013

Crispin Odey Starts Car Phone Warehouse Position

Crispin Odey's hedge fund, Odey Asset Management, has disclosed a new position in London listed Car PHone Warehouse (LON:CPW).

Due to trading on January 29th, Odey hold the equivalent of 5.03% of Carphone Warehouse's voting rights.  They hold 2.77% via contracts for difference (CFD) which are explained via that link.

Odey typically buy stocks that have undergone a large price decline or at least a significant pullback, but in this case they purchased Carphone Warehouse around its 12-month high.  CPW does trade on a very low trailing P/E ratio and this may have been one of the factors that attracted Odey.

For more activity from this hedge fund, see Odey's portfolio activity.

Per Google Finance, Carphone Warehouse Group plc "principally consists of a 50% interest in the  Best Buy Europe Group and a 46% interest in Virgin Mobile France. It is involved in the management  of these businesses. The Company’s other assets consist of property, cash and loans receivable. The  Company’s Property comprises four freehold properties in London and the north of England. During  November 2011, it launched the Global Connect business, which is a profit share agreement with  Best Buy Co., Inc.”

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