Odey partners block withdrawals as hedge fund reels after sexual misconduct allegations from founder
Odey Asset Management has blocked withdrawals from two funds and closed another as the hedge fund reels after its founder was accused of sexual misconduct.
Partners of the company ousted Crispin Odey over the weekend, saying the company would be rebranded as it struggles to reassure investors.
But as investors rushed to withdraw their money, the company closed the Brook Developed Markets Fund and the LF Brook Afternoon fund.
Accused: Partners at Odey Asset Management ousted founder Crispin Odey (pictured) this weekend, saying the company would be rebranded as it struggles to reassure investors
The two funds are managed by Brook Asset Management, a subsidiary of Odey. In a letter to clients, the Brook Developed Markets Fund – which had £452m in assets at the end of May – said it was forced to block withdrawals as investors attempted to withdraw cash worth more than 10 per cent of the asset’s value. fund.
The Swan Fund was also suspended and its portfolio will be liquidated soon, the company told investors.
In a letter to Swan Fund investors, the company said it was “in the interest of shareholders that the [fund] be closed and its portfolio liquidated, with the proceeds of the liquidation being returned to shareholders’.
US bank JP Morgan also ended its relationship with the asset manager, meaning all major banks – including Morgan Stanley, Goldman Sachs and Exane – have cut ties with Odey Asset Management.
A report published last week in the Financial Times revealed allegations of sexual harassment against 13 women over a 25-year period, leading Odey Asset Management to kick the 64-year-old out.
A law firm for Odey has said he “firmly disputes” the allegations.
City watchdog the Financial Conduct Authority launched an investigation two years ago into the possibility of “non-financial misconduct” at the hedge fund.