Odey Asset Management’s $127m Odyssey fund has reduced its short exposure to North American companies as a hedge against the "manic euphoria" in equity markets.

Founder Crispin Odey has long been forecasting a shift in the current equity bull market. A sustained period of growth in equity markets has led to a run of poor performance and outflows for the hedge fund manager, who is known for making successful bearish trades against banks during the financial crisis.