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Odey changes tack on 'cheap' UK banks

Crispin Odey, the hedge fund manager who profited heavily last year from taking short positions in UK financials, has started to increase his long positions in the sector, which he now considers to be undervalued amid fears many banks will be taken into government ownership.

In the latest monthly report for his €109m ($139m) long-only portfolio, Odey said: "The only area where I am increasing exposure is to UK banks, which reflects just how cheap they are. The shares are trading like options. After Northern Rock and Lehman...