Odey Asset Administration halts trading in fourth fund

Odey Asset Administration halts trading in fourth fund

Acquire cost-free Odey Asset Management LLP updates

Odey Asset Management has suspended trading in a fourth fund adhering to a “sizeable level” of withdrawal requests in the wake of sexual misconduct allegations from founder Crispin Odey, which have precipitated the crack-up of 1 of London’s oldest hedge fund firms.

The agency said in a letter to traders on Friday that it was quickly suspending investing in its $80mn Specific Circumstances fund to market assets in an “orderly fashion” to meet up with the redemptions.

In the meantime, Crispin Odey resigned on Thursday as a director of ICP Holdings, a team of businesses working in the Lloyd’s of London insurance policies market.

The moves cap a tumultuous week for both of those the business and its founder because the Fiscal Situations released previous Thursday an investigation into allegations of sexual assault or harassment from 13 women in opposition to Crispin Odey. He strenuously denies the allegations.

The organization explained on Thursday it was in “advanced discussions” about transferring specified resources and staff members to rival firms.

Odey Asset Administration before this week halted investing in a few other funds — Brook Created Marketplaces, LF Odey Portfolio and Brook Absolute Return — and shut the Odey Swan fund, because of the increased than typical quantity of withdrawal requests.

The Swan fund, which was managed by Crispin Odey and residences €117mn of belongings, is currently being liquidated so that cash can be returned to shareholders. The evaluate to halt withdrawals from the other cash is a single of the emergency steps taken by the organization to mitigate the outcomes of buyers and institutions slicing ties with Odey Asset Administration.

This week, the FT reported that JPMorgan was terminating its romantic relationship with the asset supervisor, serving detect on its key broking and custody relations. Key brokers give hedge resources with inventory lending, lending and other solutions, whilst custodians safeguard customers’ money. It is a regulatory prerequisite for hedge cash to have a custodian in area.

UBS also moved to cut ties with Odey Asset Management as a key broker, pursuing Morgan Stanley, Exane, JPMorgan and Goldman Sachs.

Odey Asset Management, which oversees about $4.4bn, is now in talks with rivals about offloading funds and managers in a go that could spell the close of the company that Crispin Odey established in 1991.

The company reported on Thursday that “any sale or rehousing is thought of topic of system to any pertinent regulatory approvals and owing diligence, with a look at to an orderly transition of any property and investors”. Having said that, it did not name the organizations engaged in the conversations.

The firm’s biggest funds contain Brook European Concentrate Fund, run by Oliver Kelton, and LF Brook Absolute Return Fund, operate by James Hanbury. Odey Asset Administration made the Brook brand name in 2020 and rebadged several funds with the moniker.

Crispin Odey’s departure from ICP Holdings is in depth in filings 1st claimed by Bloomberg.

The team contains a company member, or insurance company, at Lloyd’s, that had £104mn of underwriting potential past year, in accordance to company accounts.

Lloyd’s declined to comment on no matter whether Crispin Odey is a participant in the market, but reported “all users and members at Lloyd’s are anticipated to meet the requirements we established and action may possibly be taken in which people standards are not met”.

Odey Asset Administration also has an 8 for each cent holding in Purpose-outlined Helios Underwriting, which owns a portfolio of insurance policies entities within just Lloyd’s. Helios declined to comment.