Freddie Neave, who took over the management of Odey Asset Management's European Inc fund following the departure of  the firm's founder Crispin Odey, has dropped the fund's short positions against UK government bonds, according to a report by Reuters.

The report cites an investor letter dated 8 August and seen by Reuters as confirming the move to cancel bets against UK gilts held by the €248m fund, which was down by 15.6% for the year, as of 31 July.

Odey AM ended 2022 as the top fund tracked by HSBC's Alternative Investment Group with a gain of 151.46% for the year an the back of wagers against British government bonds.

According to the letter, which was signed by Neave: "Government bond exposure has been taken to zero. This can give investors comfort that the exposures they face over the coming weeks are materially lower than in the ordinary course of business."

Odey was ousted from the firm in June following multiple allegations of sexual assault and harassment, which he denies.