Odey Asset Management to be broken up

Odey Asset Administration is becoming dismantled, with the hedge fund company saying it is in “advanced discussions” to transfer sure money and staff members to rival teams in the wake of sexual misconduct allegations towards its founder.

The firm, which has shut to $4.4bn of assets beneath administration, has struggled to incorporate a spiralling crisis after a Fiscal Periods investigation last week described allegations of sexual assault or harassment from 13 women towards its founder Crispin Odey.

The move to break up the team, which comes a 7 days immediately after the FT posted its investigation, could mark the end of one particular of London’s oldest hedge money. It will come as a additional blow to Crispin Odey, who recognized the Mayfair-centered firm in 1991 but was ousted from it last weekend in response to the allegations about his behaviour. The 64-calendar year-old strenuously denies the claims.

“His slide from grace has occur at previous,” claimed just one of the women who spoke to the FT as section of its investigation. “I genuinely hope it will jolt others into ensuring their workplaces are safe and sound types the place women can thrive.”

A popular financier identified for generating contrarian bets, Crispin Odey is also identified in political circles for currently being a critical Brexit supporter. He dismissed as “crap” recommendations he donated cash to previous key minister Boris Johnson’s leadership marketing campaign so his hedge fund could financial gain from a no-deal withdrawal.

The determination to break up the company caps a tumultuous 7 days for the two it and its founder, who remained a central determine at his eponymous hedge fund right after currently being acquitted from a 2020 demo on a demand of indecent assault.

The UK’s money regulator is weighing broadening an present investigation into the company, people acquainted with the condition informed the FT, when the regulator’s dealing with of the affair has by itself activated parliamentary scrutiny.

Redemptions at various of Odey Asset Management’s money ended up limited this 7 days just after banking associates together with JPMorgan, Goldman Sachs and Morgan Stanley slice ties with the team.

Tuesday’s information that JPMorgan experienced served observe on its agreement to safeguard belongings for the hedge fund’s consumers as its custodian escalated the disaster since hedge money will have to have a custodian in purchase to comply with the Monetary Carry out Authority’s rule e book.

The outgoing custodian should uncover a substitute to consider around its job, but sector sources explained this would possibly be hard from the backdrop of monetary establishments severing ties with the crisis-strike team.

Odey Asset Administration stated in a statement to consumers on Thursday that it was “now in sophisticated conversations for rehousing cash and transferring selected fund management routines and persons to other asset managers”.

“Any sale or rehousing is thought of topic of course to any relevant regulatory approvals and due diligence, with a see to an orderly changeover of any belongings and traders.”

It did not offer even more element on which money. Its major funds include Brook European Concentrate Fund, operate by Oliver Kelton, and LF Brook Complete Return Fund, run by James Hanbury. Brook is the title numerous Odey money were being rebranded beneath soon after 2020’s prison cost against Crispin Odey.

A individual common with the approach reported regulators were staying held totally educated. The FCA declined to comment on the proposed transactions.

The company added that, even though it experienced been in “constructive dialogue” with its assistance providers, it had entered into discussions to split up the group as “it has, however, turn into very clear that some financial commitment management things to do of the partnership are influenced by current events”.

Odey Asset Management’s remaining partners experienced hoped to include the fallout by setting up new administrators at cash earlier run by Crispin Odey earlier in the week.

Added reporting by Emma Dunkley in London