Star hedge fund manager Crispin Odey’s annus horribilis goes from bad to worse as another of his AIM stocks takes a mauling today.
Troubled financial technology start-up Tungsten Corporation (TUNG:AIM), in which Odey has a 15% stake, traded as much as 7% lower in early trade at 68p.
Down 85% since its 8 September high last year, Tungsten's troubles come on the back of Odey’s investment in trading platform Plus500 (PLUS:AIM), which has shed 40% year-to-date.
Losses in Odey’s flagship hedge fund were an eye-watering 19% in the month of April after a short position on the Australian dollar and other bearish bets moved against the high profile financier.
Tungsten's plunge resumed after a surprise cash call on 22 May and market doubts over its claims of improved financial performance in a trading statement issued on 14 May.
Short-sellers have seen the stock as an easy target because Tungsten does not pay a dividend, making the trade cheaper to finance.
Analyst coverage is also off the cards until a 12 June lock-up on house broker Canaccord Genuity expires. Canaccord advised Tungsten on its 21 May placing which raised £17.5 million of additional capital, so can’t publish research until the lock-up expires.
Sales for the year to end-April were ahead of target, according to Tungsten’s May update, while losses were lower than anticipated.
Lending through its invoice discounting platform - a key plank of Tungsten’s growth strategy - disappointed, totalling £10.4 million versus market expectations of £58 million.
Tungsten trades 4.5% lower at 75p.
