Crispin Odey’s hedge fund Odey European has reported the best monthly advance in its 17-year history by backing his view that “junk” shares would be the biggest winners in a rally, according to Bloomberg.

The fund gained 28 per cent in April, according to data compiled by the news service, by going into companies such as Royal Bank of Scotland and Barclays.

Some of the shares cost only two times earnings, according to the report.

His performance comes at a time when, after having suffered their worst performance year on record in 2008, figures have been more positive since the start of 2009. The Hedge Fund Research HFRI Fund Weighted Composite rose by 3.8 per cent in April, bringing a year-to-date gain of 4.2 per cent.