Crispin Odey has celebrated his best year ever after the value of one of his hedge funds more than doubled

Last year, Odey profited from wagers on UK government bonds, which saw their value decline as increasing inflation and market turbulence brought on by Liz Truss's mini-budget battered the economy. His European Inc fund soared 152% as a result.

The fund manager had amassed a sizable bet against gilts, long-term UK bonds that typically mature between 2050 and 2061.

His wagers, which at one time were worth approximately 800% of the assets of the hedge fund, were supported by substantial borrowing.

However, as global and UK inflation increased, raising borrowing costs and lowering bond prices, the bet soon turned profitable, allowing the fund to cash in.

According to Bloomberg, the fund was up 193% before giving back some gains in the last three months of the year, so the gains may have been substantially higher.

Odey also placed a wager against the pound, which lost nearly 10% of its value in relation to the dollar last year. The 64-year-old was effectively able to recover his losses from 2015 to 2020 thanks to the returns.

Odey has now reduced his short position in gilts, but he still holds long-term UK bonds tied to inflation that he expects to stay high.

In addition, he projected that as a result of the reopening of the Chinese economy and the ongoing disruption brought on by the conflict in Ukraine, commodity prices will "start to increase again."

Odey has a lengthy history of placing contentious but successful wagers that frequently defy accepted opinions.

On the night that Britain voted to leave the EU, the passionate Brexiteer pocketed about £220 million by wagering that markets would decline.

He made money last year after forecasting a rise in oil and gas prices, which came true after Russia attacked Ukraine.

Odey Asset Management, founded in 1991, also holds equity in South African coal miner Thungela Resources. Despite operating in an unsustainable industry, Thungela Resources was one of the best-performing equities on the London market last year, with an almost 260% increase in share price.