Hedge fund manager Crispin Odey, one of the best-regarded investors in the City, is preparing for the return of economic woe and currency crises after his European fund fell 7.3% in a month amid "choppy" markets in March.

In a note to investors in the €1.7 billion fund, Odey writes that "the reversal in fortunes has been swift and the destruction intense". He said some of his best-performing stocks had fallen 10% or 20% in the month, while the worst-performers rallied.