British Hedge Fund Manager Sees Doom And Gloom For Markets

British hedge fund manager Crispin Odey thinks the world is headed for a downturn that will "devastate equity markets."

The 55-year-old hedge fund manager, whom the New York Times recently described as a "semi-celebrity" in England, said central banks have used up all their fire power and will be at a loss to counter ill effects stemming from China's weakening economy and plunging worldwide oil prices .

In a letter to investors, Odey said a pending down-cycle is "likely to be remembered in a hundred years."

Odey added that "shorting opportunities look as great at 2007-2009" because investors see recent events in isolation.

"Whether it's the oil price fall or the Swiss franc, they're seen as exceptions," Odey said.

Odey also said currency trading could offer attractive opportunities.

Although Odey said "it's too early to see what will happen," he added that "I'm amazed that so many are fully invested."

Mid- and small-cap stocks have moved into bear territory, with investors relying on large caps to "keep the whole thing going," Odey said.

Odey, whose $2.3 billion Odey European fund gained a reported 200 percent between 2007 and 2013, recently completed a $250,000 chicken coup, dubbed Cluckingham Palace by tabloids, at his West England estate.